The National Bank of Georgia (NBG) said it will sell USD 40 million tomorrow as the national currency, Lari, hit a record low against U.S. dollar, falling to 2.9507 on July 31.
“Despite positive domestic and foreign macroeconomic dynamics, amid tourism-related shocks and negative expectations, the exchange rate has currently reached the level, which may create a risk to price stability,” the NBG said in a statement of July 31.
It also said that the bank would use all means at its disposal “to avoid materialization of this risk.” It also noted that if needed, the National Bank will again intervene on the currency market in the coming days.
“In case of maintenance of the pressure coming from the exchange rate, the National Bank will also tighten its monetary policy,” the statement reads.
As of January 4, 2019, GEL exchange rate stood at 2.6752 per USD.