The central bank said on Wednesday it would sell $40 million on Thursday, might intervene again soon and might tighten monetary policy to reduce inflationary risks, as the country's currency, the lari, fell to a record low against the dollar.

The currency traded at 2.9296 to the US dollar after the sale on Thursday, compared with 2.9718 to the greenback on Wednesday.

Georgia's tourism was hit after Russia suspended flights to the country on July 8 and said it was tightening controls on imports of Georgian wine, amid anti-Russian protests.

The government expects economic growth this year of at least 5pc, though central bank Governor Koba Gvenetadze told Reuters this month the dispute with Russia might cut that by more than one percentage point.

Meanwhile, inflation looks likely to exceed the bank's target of 3pc this year. Annual inflation stood at 4.3pc in June, up from 2.2pc in June 2018 but down from 4.7pc in May.

The central bank kept its refinancing rate unchanged at 6.5pc last week. It holds its next policy meeting on Sept. 4.