On October 23, at the currency auction held by the National Bank of Georgia (NBG), the NBG sold 60,000,000 US dollars. The weighted average exchange rate was 2.7139. This information was released by the National Bank.
According to the NBG, the decision to hold the currency auction was made to prevent excessive influence from non-fundamental factors and the typical pre-election market agitation on the currency market.
As noted by the NBG, this, in turn, will help avoid negative impacts on prices and financial stability and contribute to stabilizing the currency market.
"Recently, increased uncertainty in the currency market has intensified pressure on the exchange rate from certain large transactions. In such cases, the NBG follows its mandate and uses monetary tools to balance market expectations and currency supply-demand dynamics. It is expected that as these expectations ease, the currency market will return to its usual dynamics.
It should be noted that the country's macroeconomic fundamentals are quite positive — in the last three years, there has been strong economic growth, and since 2023, inflation has been below the target level of 3%. Preliminary data shows that in September, goods exports increased by 17%, while imports decreased by 4.2%. Additionally, foreign currency inflows remain strong, which helps maintain the current account deficit at a sustainable level," the NBG report stated.
