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Georgian Lari depreciates further against US Dollar by 5 Tetris

By Natalia Kochiashvili
Wednesday, November 4
As a result of trading on November 3, the national currency depreciated by 5 Tetris against the US dollar, resulting in the value of one dollar presenting GEL3.2988- the maximum price of the dollar in the last month. The depreciation against the Euro was sharper, reaching 8.25 tetri. As a result, the valued of one Euro increased to GEL3.8586.

The lari depreciated by 9.49 tetri against the British pound sterling, resulting in the value of one pound becoming GEL4.2848.

The Georgian Central Bank carried out the largest foreign exchange intervention in 2020 on November 2. National Bank of Georgia sold $ 60 million during its Foreign Exchange Auction. The average weighted bid rate was 3.2439. In total, 21 foreign exchange interventions took place during 2020, resulting in $ 710 million in sales.

Lari slightly appreciated against the US Dollar and Euro at the beginning of October, remaining relatively stable throughout the month amid the central bank’s regular interventions, with USD 260 sold.

Lari was being traded at 3.2327 against the US Dollar and 3.7732 against the Euro a day earlier. Two weeks earlier, on October 20, it stood at 3.2117 per US Dollar and 3.7763 per Euro.

The significant depreciation started in mid-March amid COVID-19 related measures, but in late May, it regained ground since the Government gradually lifted the restrictions. In September, after three months of relative stability, it started depreciating again. On September 26, Lari stood at 3.3332 per US Dollar.

Besides foreign exchange interventions, on November 3, the Ministry of Finance of Georgia sold GEL90 million worth of bonds at the treasury securities auctions.

The Ministry of Finance of Georgia reported that it issued Benchmark Bonds with a nominal value of GEL70 million and maturity of 2 years on Treasury Securities Auction N46. Three commercial banks participated in the auction, with total demand amounting to GEL128 620 000. The following interest rates were reported: A minimum rate of 8.100%, a maximum rate of 8.200%, and a weighted average rate yielded 8.171%.

The Ministry also issued 6-month Treasury Bills with a nominal value of GEL20 million. 4 commercial banks participated in the auction, with total demand equaling to GEL35 million. The minimum interest rate stood at 8.110%, the maximum- at 8.150%, while the weighted average rate yielded 8.147%.