On October 23, 2024, the National Bank of Georgia conducted a foreign exchange auction where 60 million USD was sold, with a weighted average exchange rate of 2.7139.

The National Bank of Georgia decided to hold this auction to mitigate the influence of non-fundamental factors and the usual market agitation that often arises during the pre-election period. This proactive step aims to safeguard price stability, maintain financial equilibrium, and promote the stabilization of the foreign exchange market.

Recent volatility in the currency market, driven by uncertainty and large individual transactions, has increased pressure on the exchange rate. In response, the National Bank of Georgia, acting within its mandate, has utilized its monetary tools to align market expectations and balance currency supply and demand. It is anticipated that, as expectations subside, the foreign exchange market will return to its usual dynamics.

It’s important to note that the country’s macroeconomic fundamentals remain robust. Over the past three years, Georgia has seen high economic growth, and since 2023, inflation has remained below the 3% target. Preliminary data for September shows a 17% increase in goods exports, while imports decreased by 4.2%. Additionally, strong foreign currency inflows continue to support a sustainable current account deficit.