The Georgian National Bank (NBG) conducted a USD 60 million intervention at the foreign exchange auction.

According to the NBG, this decision aimed to address recent agitation in the foreign exchange market, marked by large one-time transactions leading to excess demand for currency, thereby putting pressure on the GEL exchange rate.

“Recent market fluctuations are not rooted in fundamental macroeconomic factors and are thus short-term in nature. Georgia’s macroeconomic indicators remain robust: international reserves are at a historical peak, foreign inflows are stable, the current account deficit is at a record low, and there has been high economic growth over the past three years. Inflation remains below the 3% target, while fiscal balance and public debt are maintained at sustainable levels,” the National Bank clarified.

To ensure the smooth functioning of the financial system and sustain healthy profitability and asset quality in commercial banks, the NBG emphasized the presence of solid capital and liquidity buffers, with the total volume of liquid assets in the banking system surpassing 16.7 billion GEL.

Georgia’s financial system is one of the strongest in Europe,” the NBG stated.