Archil Iakobashvili, former portfolio manager of the National Bank of Georgia’s (NBG) international reserves, said in an interview with BMGTV that the Georgian lari could have strengthened more in 2025 alongside the central bank’s reserve accumulation policy.
Iakobashvili praised the NBG’s strategy for building record-high reserves, which reached $6.16 billion by November 2025, with over $2 billion purchased from January to November. Despite this, the lari only appreciated 4% against the U.S. dollar, ending the year at 1 USD = 2.6963 GEL.
He explained that, technically, the central bank could have structured interventions so that both the quantity of reserves and the exchange rate effect worked in tandem, potentially bringing GEL to around 2.50 USD.
Iakobashvili also noted that the NBG demonstrated professional firmness by not reducing the refinancing rate in 2025, even as major central banks globally lowered theirs. This approach helped maintain stability in Georgia’s small economy and positioned the lari for potential further strengthening.
The economist highlighted that a stronger lari would be particularly beneficial in the spring of 2026, when the government plans to issue a $500 million Eurobond to refinance the 2021 Eurobond.
