At the foreign exchange auction held by the National Bank of Georgia on October 16, 2024, $64.9 million out of the $70 million offered were sold. The weighted average exchange rate was set at 2.7139 GEL per US dollar.
Large, one-time transactions continue to influence the foreign exchange market, impacting the Lari’s exchange rate. To prevent excessive fluctuations, the National Bank of Georgia opted to hold today's auction.
It’s important to emphasize once again that these recent fluctuations in the foreign exchange market are not linked to macroeconomic factors and are therefore expected to be short-term.
The country's macroeconomic fundamentals remain strong. Over the past three years, Georgia has experienced solid economic growth, and since 2023, inflation has remained below the target rate of 3%. Preliminary data for September shows a 17% rise in exports and a 4.1% decrease in imports. Additionally, strong foreign currency inflows are helping to sustain the current account deficit at manageable levels.
