Since May 25, 2009 National Bank of Georgia performs interventions on the currency market only through currency auctions -  declared President of National Bank of Georgia Giorgi Kadagidze on the briefing today. As he pointed out this step doesn’t mean exchange rate policy change but considers only currency market arrangement operational framework modification. In addition, since today official exchange rate definition shall be performed not due to the exchange rate defined on the interbank currency stock exchange, but considering the deals registered within Bloomberg Trading System.

“Scheduled change doesn’t mean currency policy review. National Bank of Georgia still continues to operate in controlled floating exchange rate mode, within which exchange rate definition shall be performed considerably through market mechanisms, and time-by-time National Bank of Georgia shall implement interventions to the currency market through auctions at this time for the purpose not to allow sharp short-term variations of exchange rate” – said Giorgi Kadagidze.

Considering the results related to the deals executed on the interbank market and currency auctions within Bloomberg Trading System National Bank of Georgia shall on every day basis calculate the daily average-proportional rate that shall be the official exchange rate for the next day.

“This changes implementation shall facilitate more marketing mechanisms development of exchange rate definition. It shall initiate currency market development in the country and shall indirectly contribute to the other markets development. On its turn developed currency market shall provide more stability of exchange rate. All that shall be the precondition for increase of National Bank currency and monetary policy efficiency” – declared Giorgi Kadagidze.

The information on the operations performed by National Bank of Georgia on the currency auctions shall be publicly available on the same day on the website of the National Bank of Georgia. National Bank of Georgia shall also publish new official exchange rate on the National Bank’s website every business day at 17:00.