The foreign exchange reserves of Georgia decreased by USD 212 million in May, - according to the statistics published by the NBG. As of the document, the level of reserves decreased to USD 4.6 billion.
The decrease in reserves was primarily related to the foreign exchange interventions carried out by the NBG in May, as the National Bank sold USD 109 million in foreign currency interventions in May, including the first intervention in the amount of USD 60 million on May 16, the third day after the adoption of the Russian law, and the second intervention on May 28 in the amount of USD 49 million.
Last month, the International Monetary Fund published a new assessment, according to which the volume of foreign currency reserves of Georgia is less than the level of adequacy.
"Despite the purchase policy by the National Bank, the level of foreign exchange reserves of Georgia has fallen below the IMF's adequacy threshold," - the IMF report reads.
Another factor in the decrease of foreign exchange reserves was the servicing of Georgia's foreign debts in May, because the state pays its foreign debts through it.
In March 2024, the NBG decided to add gold to its foreign exchange reserves, the central bank has already purchased 7 tons of gold, the current value of which is USD 539 million. Accordingly, 12% of foreign exchange reserves are currently denominated in gold.
