NBG Vice President: The central bank has reserves that can be used if necessary

NBG Vice President: The central bank has reserves that can be used if necessary

access_time2019-09-20 12:00:41

“With recent currency  interventions, the National Bank responded to expectations and showed it has reserves that can be used if necessary,” the NBG Vice President Archil Mestvirishvili says.

According to Mestvirishvili, the devaluation of the national currency was caused by negative expectations due to  Russian travel ban.

“There were completely unreasonable expectations that the National Bank is interested in the lari’ collapse. To show everyone the groundlessness of such rumors, the National Bank decided to sell $ 30 million in the market, ” he notes.

In the NBG Vice President’s words, the central bank’s currency reserves hit  the record high  and significantly exceed the minimum limit set by the International Monetary Fund.

At the same time, Mestvirishvili adds that currency interventions cannot bring long-term positive results if the devaluation was caused by  systemic, fundamental economic factors.


 

The vice president of the National Bank also touched on the impact of the national currency’s rate  on business.

 

“Business believes that the unstable lari is one of the serious challenges that hinders  business development and boosts  inflation. To reduce inflation, the National Bank has tightened monetary policy and is set  to keep moving in this direction until the inflation risk is excluded, ”Archil Mestvirishvili explains.

NBG Vice President also advises the citizens to take loans in national currency.


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