Banking
Posted: 1 month ago

National Bank Intervenes with $60 Million to Stabilize Currency Market

Today, the National Bank of Georgia intervened in the foreign exchange market, selling $60 million to provide liquidity amid recent volatility.

This decision was prompted by agitated processes in the currency market, which were driven by one-time large transactions, leading to excess demand for foreign currency and additional pressure on the GEL exchange rate.

The National Bank emphasized that these market fluctuations are not caused by fundamental macroeconomic factors and are expected to be short-term. Georgia's macroeconomic parameters remain strong, with international reserves at a historical maximum, stable foreign inflows, a current account deficit at a historical minimum, high economic growth over the past three years, inflation below the 3% target, and fiscal balance and public debt maintained at sustainable levels.

Additionally, Georgia's financial system is robust, with commercial banks demonstrating healthy profitability, high-quality assets, and solid capital and liquidity buffers. These conditions enable them to serve customers efficiently and support the economy through lending. The total volume of liquid assets in the banking system today exceeds 16.7 billion GEL, indicating unprecedented resilience to potential shocks. Currently, Georgia's financial system is considered one of the strongest in Europe.

The National Bank will continue to monitor the market closely and will utilize all available tools to ensure the stability of the financial market.