C.Bank Buys USD 20mln amid GEL Appreciation
The National Bank of Georgia (NBG) bought USD 20 million at a foreign currency auction on May 5 as lari (GEL) continued strengthening against U.S. dollar.
GEL was trading at 2.214 per U.S. dollar by late Thursday afternoon, almost 8% stronger since the beginning of the year and 4.6% stronger compared to early May, 2015.
It was NBG’s sixth intervention on the purchasing side. The central bank bought total of USD 75 million in these six interventions in a period between March 17 and May 5.
GEL started depreciation in November 2014, weakening from about 1.75 per U.S. dollar to its all-time low of 2.4985 by late January, 2016.
Amid lari’s depreciation, the central bank made three interventions in January by selling total of USD 60 million. Total of USD 286.96 million was sold in nine separate interventions throughout 2015 to support GEL.
Gross international reserves stood at USD 2.456 billion as of end-March 2016, up from USD 2.425 billion a month earlier, and slightly more than a year earlier of USD 2.452 billion.
