Georgia’s central bank spends $60 mln to support lari amid political crisis

TBILISI, May 16 (Reuters) – Georgia’s central bank said on Thursday it had spent $60 million in reserves to support the lari after a surge in demand for foreign currency, its largest such intervention since May 2021.

Georgia has been mired in a political crisis over a bill on “foreign agents” passed by parliament on Tuesday, which critics say is authoritarian and Kremlin-inspired. A senior U.S. diplomat suggested that day that Washington might sanction some Georgian officials if it ultimately becomes law.

On Wednesday, the lari lost 4.9% of its value against the dollar to trade at 2.78, an almost two-year low, before paring losses to end the session up 0.65%. As of 1200 GMT on Thursday, the lari had shed 2.83% from its close on Wednesday.

The National Bank of Georgia said the decision to intervene was taken amid “excess demand for currency, which created additional pressure on the exchange rate of the Georgian lari”.

Source: REUTER