In January 2024, Georgia's foreign exchange reserves decreased by USD 156 million to USD 4.85 billion, - according to the report published by the National Bank of Georgia.
According to the statistics, foreign exchange reserves decreased by USD 112 million in December 2023, therefore, the decrease made up USD 268 million in the last two months.
The reduction of Georgia's foreign exchange reserves might have been due to the repayment of foreign debts, which was carried out from the mentioned account.
Another factor that had an impact on the reduction was the decline of the minimum reserve requirements for funds raised in foreign currency with a term of up to one year for commercial banks.
At the end of 2023, the National Bank reduced the minimum reserve requirements for commercial banks in foreign currency from 25% to 20%, which freed up additional financial resources for the banks. Before this decision, the said funds were kept in the National Bank and it was one of the components of the foreign exchange reserves.
