National Bank of Georgia exchange rate
The National Bank publishes official exchange rates no later than 17:00 on the day of calculation.
The exchange rate is determined by the National Bank according to the latest transactions and exchange rates on the local and international currency markets.
The only exception is the US dollar. The exchange rate of the GEL against the US dollar is the weighted average exchange rate calculated taking into account the spot deals concluded at the National Bank's foreign exchange auction and trading system during the reporting period.
If the National Bank does not publish an official exchange rate for any currency, it is recommended that interested parties use Lari National Bank exchange rate.
Starting in 2020, trading on the Bloomberg BMatch platform is carried out by the National Bank, commercial banks, microfinance organizations and the International Investment Fund.
The information needed for the recalculation is the information systems of "Reuters" and "Bloomberg" and the central banks of the respective countries.
Floating exchange rate and the National Bank as a market participant
There is a floating exchange rate in Georgia. During this regime, the national exchange rate is formed on the basis of market demand and supply and macroeconomic factors. Currencies are bought and sold in the foreign exchange market, and whichever currency has more demand, it gets stronger. In such conditions, free capital mobility and inflation targeting are easier.
The National Bank states that "it has no influence on the exchange rate determination process". But then why does he buy dollars from the market very often lately or why does he do the following reverse interventions?