Yesterday all commercial banks together were transferred 700 million in their correspondent accounts. Reserved minimum reduced by 5%, which The National Bank of Georgia lowered at the beginning of the month and as a result is expecting the GEL to stabilize.
The National Bank is reducing the minimum reserve requirement for commercial banks with foreign currency-denominated funds by 5% (up to 25%) since October 17. According to Koba Gvenetadze, the President of the National Bank these measures should help changing the dynamics of the exchange rate, stabilize the GEL and reduce inflationary pressure over time.
Financiers have positive attitude towards recent changes but there are pessimistic ones as well, saying the effect will not be as good as expected.