Economist Giorgi Khishtovani has praised the National Bank of Georgia’s (NBG) approach to replenishing international foreign exchange reserves, though he questions the claim by NBG President Natia Turnava that the “growing economy” and “currency-earning sectors” are the main drivers.
In 2025, the NBG purchased $1.3 billion, with $417 million bought in July alone, pushing Georgia’s international reserves above $5 billion.
Khishtovani explains that the “excess dollars” in the banking sector created a perfect storm, which the NBG has used to strengthen reserves. This surplus emerged after the bank tightened foreign currency lending limits to GEL 750,000, requiring banks to issue smaller loans in GEL. As a result, banks had surplus dollars, which they sold to the NBG.
He also notes a slowdown in foreign currency lending as a contributing factor. By the end of July 2025, Georgia’s total credit portfolio reached 66.1 billion GEL, up 15% year-on-year. Most of this growth came from GEL-denominated loans (19.55%), while new loans in foreign currency rose by only 9.5%, compared to significantly higher growth in previous years.
According to Khishtovani, this combination of policies and market conditions has allowed the NBG to replenish reserves effectively, even amid a slowing economy.
