The National Bank of Georgia has begun investing part of the country’s foreign exchange reserves in Chinese government bonds, marking the start of gradual diversification into yuan-denominated assets. According to NBG President Natia Turnava, initial transactions have already been executed.
Turnava said that around $100 million of Georgia’s reserves were already held in Chinese yuan, and this exposure will gradually increase to about $300 million, or up to 5% of total reserves. The expansion will be carried out step by step under the central bank’s investment committee framework.
She noted that the NBG has received approval to invest in Chinese government bonds, which are considered highly demanded instruments among institutional investors and central banks. The initiative is intended to provide both diversification benefits and practical experience in a new market.
Turnava stressed that the exposure limit is capped at 5% because Georgia’s reserve composition must broadly reflect the structure of its external debt, which is mainly denominated in US dollars and Euros. She added that the move is part of a cautious and controlled strategy to strengthen reserve management.
