Tbilisi (GBC) – The National Bank of Georgia (NBG) has not held foreign exchange auction for the 4th month. After buying $70 million at the August-September auction ($1/GEL2.71 and $1/GEL 2.75) and selling $46 million ($1/GEL2.8983  & $1/GEL8445 ).

For the last 4 months (October, November, December, January), the NBG has been actively trading on Bloomberg's Bmatch platform. It buys within $100 million every month.

On Bmatch, the NBG trades with 13 commercial banks, 4 MFOs (including Crystal, Rico), 3 non-financial companies (Wisol, Magti, Rompetrol) and 2 funds (Pension Agency, Eaton Vance...) The information on the quantity needs to be updated. Accordingly, until Monterey Policy Meeting which should be held on February 1, it cannot be said which company will be added to the platform (Beeline, Geocell or any oil importing company).

**When does the National Bank intervene in the foreign exchange market?

To remind, Georgia has a floating exchange rate regime, with the ability to automatically absorb shocks (you will remember the last time during the presidency of Koba Gvenetadze).

The exchange rate is set according to market demand and supply. Its short-term dynamics depend on expectations, while medium and long-term ones are determined by fundamental macroeconomic factors (dynamics of imports, exports, remittances, spending by migrants...)

The NBG's presence on BMatch serves to interfere with the market while disrupting it. Get involved when the exchange rate ($/₾) begins to fluctuate, in the direction of depreciation or strengthening. If it moves towards depreciation, NBG sells the US dollar, if the GEL tends to strengthen, then it buys.

NBG’s Purchases On   Bmatch (USD)


$ 99 400 000


$ 110 550 000


$ 91 400 000