Georgia’s international reserves could grow by an additional $1 billion by the end of 2026, according to TBC Group Chief Economist Otar Nadaraia. He told BMG that the sharp increase in reserves recorded in May was largely driven by the National Bank of Georgia’s foreign currency purchases.
Georgia’s gross international reserves rose by $531.2 million in May compared with the previous month, reaching $7.0 billion. Nadaraia estimates that the central bank’s foreign exchange purchases exceeded $500 million during the month, reflecting strong net foreign currency inflows into the economy.
He said higher export revenues, including from commodity and oil exports, as well as recovering tourism and remittance inflows, have contributed to a surplus supply of foreign currency in the market. According to Nadaraia, such conditions support both reserve accumulation and appreciation pressure on the Georgian lari.
While he expects the pace of reserve accumulation to slow in the coming months, Nadaraia said reserves could still approach $8 billion by year-end. He added that reserve levels are influenced not only by foreign exchange interventions but also by movements in gold prices and the value of reserve currencies such as the Euro and Chinese yuan.
