During the elections, Georgia’s foreign exchange reserves fell to a record low. In the pre-election period, the National Bank of Georgia conducted several interventions on the sale of currency.
According to the results of October, foreign currency reserves of Georgia decreased by 627 million dollars to 4.08 billion dollars. This was reported by NewsGeorgia with reference to the statistics of the National Bank of Georgia.
It is noted that the October reduction was the largest in the entire history of the country.
The main reason for this indicator is the four currency interventions of the National Bank of Georgia in the pre-election period. To support the lari, the regulator sold more than $213 million in the market. The reduction of foreign exchange reserves was also influenced by the repayment of the state foreign debt.
Over the past year, the amount of foreign exchange reserves of Georgia has decreased by 1 billion dollars. It is currently at the level of July 2022.
Earlier, the Fitch rating agency noted that Georgia lags behind other countries with a BB rating (speculative rating) in terms of its reserves.
It will be recalled that parliamentary elections were held in Georgia on October 26. The ruling Georgian Dream party won. The opposition parties declared that they do not recognize the election results. They demand a second vote.
President Salome Zurabishvili also refused to recognize the election, the results of which she called “totally falsified.”
