May 15, 2019

Likely no NBG interventions on FX market in April

Quick Update

  • Following sizeable interventions in Jan-Feb 2019, NBG did not intervene on the FX market since February 2019 via the direct interventions. At the same time, USD/GEL exchange rate have only briefly crossed last 20 days moving average implying the FX purchases by the central bank using options* should not have been sizeable as well.
  • As of the end of April 2019, NBG’s gross international reserves stood at 3.6 bn USD up by 18.8% YoY and by 4.2% MoM. Sharp monthly increase of gross reserves is mainly explained by the increased FX reserves requirements for commercial banks. As for the net international reserves, estimated NIR went up by 11.7% YoY. NIR exceeds the lower threshold for June 2019 as defined at 1.456 bn USD in the agreement with the IMF by around 200 mln USD.