National Bank of Georgia: ”Foreign exchange reserves increase by $324 million, reaching $4.45 billion”

Georgia’s foreign exchange reserves grew by $324 million in December 2024, reaching a total of $4.45 billion, according to the National Bank of Georgia (NBG).

Natia Turnava, Acting President of the National Bank, emphasized the importance of building reserves as a key priority. “Foreign exchange reserves are a critical guarantee of our country’s macroeconomic stability. The recently published data demonstrates solid growth in our reserves at the end of the year, driven by several factors,” she stated.

She highlighted that the National Bank purchased a substantial amount of US dollars in November and December, made possible by favorable economic conditions. Additionally, the consistent month-on-month growth of deposits in both foreign and national currencies within the banking sector significantly contributed to the increase in reserves. The rise in foreign currency deposits, coupled with higher reserve requirements, played a notable role in boosting the total reserve volume.

Turnava noted that while the NBG occasionally uses reserves to mitigate excessive volatility caused by non-fundamental factors in the foreign exchange market, it prioritizes replenishing reserves at every opportunity.

Another key factor in the reserve growth was the diversification strategy implemented by the NBG. “Earlier this year, we purchased monetary gold, and the rise in international gold prices has led to a significant increase of around $100 million in our reserves,” Turnava explained.

The NBG expects the upward trajectory of reserves to continue, supported by projected economic growth. Turnava assured that the bank remains committed to further diversifying and managing reserves efficiently.

Updated data on Georgia’s official foreign exchange reserves will be published by the NBG on February 7, 2025.