Foreign exchange reserves of the National Bank of Georgia continue to grow: a new maximum has been reached

Since the beginning of the pandemic, since March 2020, the international reserves of the National Bank have grown by $ 753.9 million, or 22.2%

TBILISI, 11 Jun – Sputnik. As of May 31, 2021, the international reserves of the National Bank of Georgia increased by $ 17.2 million over the month and left $ 4,153.5 million, which is a historical maximum, according to the website of the National Bank of Georgia.

Since the start of the pandemic, since March 2020, international reserves have grown by $ 753.9 million, or 22.2%. Since the beginning of this year, the growth of reserves amounted to $ 242.9 million.

Structure of international reserves

International reserves converted into foreign currency are the main part of the National Bank’s reserves and amount to $ 3.9 billion.

Their structure includes funds placed in securities – $ 2.7 billion, and currency stored in the accounts of foreign banks and the IMF – $ 1.2 billion.

In addition, the reserves of the National Bank include funds placed in special means of borrowing (SDR) – $ 209.9 million, and the reserve position in the IMF is $ 31.5 thousand. The National Bank of Georgia does not store funds in gold.

What the National Bank spends its reserves on

National Bank President Koba Gvenetadze said that the regulator plans to intervene to stabilize the market.

“I announce that this year we will spend reserves to stabilize the lari exchange rate, but in such a way that this will not change the given given by the fundamental factors. times and higher inflation after, “Gvenetadze said.

  • The establishment of the official exchange rate of the lari against the dollar since May 2009 has been carried out by aggregating transactions on the interbank market of the Bloomberg trading system. Since February 1, 2021, the Georgian foreign exchange market has completely switched to trading in the Bmatch Bloomberg system.

To stabilize the foreign exchange market, the National Bank held 26 auctions in 2020, selling a total of $ 873.2 million. This year, the regulator has already sold $ 242.9 million at seven auctions. The anti-record for the exchange rate of the lari was recorded on March 27, 2020, when the national currency dropped to 3.4842 GEL / $ 1.

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