The National Bank of Georgia continues to refill FX reserves, buying 50 mln USD on interbank FX market in February 2019 — an estimated 5% of the same month GDP.
In addition, banks likely exercised the substantial portion of the GEL call options worth 150 mln GEL (or around 56 mln USD) in February. Currently banks hold GEL call options worth 200 mln GEL which may be exercised in March 2019 if GEL appreciates against USD.
Lower limit for net international reserves of NBG defined at 1.456 bn USD as of June 2019 was likely already met in January. Sizeable interventions also in February have created additional buffer.
Source - TBC Research
