Within the framework of the World Bank Reserve Management Advisory Program (RAMP) Forum, the President of the National Bank of Georgia Koba Gvenetadze participated in a panel discussion on "Global Response to COVID-19: Open Talk on Challenges and Goals". He was joined in the panel discussion by Rodrigo Cubero, Governor of the Central Bank of Costa Rica, Patrick Njoroge, Governor of the Central Bank of Kenya, Carmen Reinhart, Chief Economist of the World Bank, and Abel Sithole, CEO of Public Investment Corporation of South Africa. The meeting was moderated by Jingdong Hua, Vice President and Head of the Treasury of the World Bank.
It was noted at the meeting that the high-level discussion format provides a platform for open conversations so that RAMP members can exchange information and experiences about what impact COVID-19 has on monetary policy. Also, talk about the challenges faced by public sector asset managers.
Koba Gvenetadze spoke about how the COVID-19 pandemic affected managing the National Bank reserves, how the process is carried out remotely, and what model can be formed in the future.
"We were fully prepared to face the pandemic because we had a conservative approach to difficult scenarios. We had high-liquid and low-risk assets in reserves that are demanded. Therefore prices are also rising under these specific circumstances.
We switched the backup management function and systems to the remote mode in a short period of time and continued to operate smoothly at full capacity. As a result of prudent policies, we were able to use our reserves rationally when we needed them most. At the same time, when interest rates in key reserve currencies remain at an unprecedented low, we will continue to look for new ways and tools to increase the efficiency of reserve management, "said Koba Gvenetadze, President of the National Bank.
Under the Reserve Management Advisory Program (RAMP), the World Bank has been assisting the central banks and state and sovereign wealth funds of various countries since 2001. The goal of the program is to promote more efficient management of foreign exchange reserves by countries. The National Bank of Georgia has been involved in the RAMP program since 2009.