GEL Depreciates Further Against USD, EUR

Georgian national currency, lari (GEL) fell to to 2.7674 against U.S. dollar after appreciating to 2.6478 a week ago.

GEL was trading at 2.7303 against U.S. dollar a day earlier.

GEL also depreciated to 2.9334 against EUR, GEL’s all time low.

GEL was relatively stable for a month before October, hovering around 2.29-2.32 per U.S. dollar, about 30% weaker compared to November, 2014, when GEL started depreciating. But since mid-October GEL started further weakening, falling to its all-time low of 2.7846 against U.S. dollar on December 22.

GEL appreciated slightly after the National Bank of Georgia sold USD 40 million at a foreign currency auction on December 20 to support the national currency.

Since the start of 2016, NBG sold a total of USD 280 million and bought USD 278.35 million in 24 currency market interventions.