Georgia’s international reserves are expected to reach at least $7.2 billion by the end of 2026, according to Lasha Kavtaradze, economist at investment bank Galt & Taggart.
Speaking on the Business Morning program, Kavtaradze said the strengthening of the Georgian lari is being driven by growing foreign currency inflows from exports, remittances, and tourism revenues. Since the beginning of the year, the lari has appreciated by around 1%.
He noted that the National Bank of Georgia purchased $833 million on the foreign exchange market during the first four months of the year. After pausing purchases in March due to tensions involving Iran, the central bank resumed interventions, buying $333 million in April, with May purchases expected to be even higher.
According to Kavtaradze, the accumulation of reserves has strengthened market confidence and helped cushion the impact of regional geopolitical tensions. He pointed out that during the latest escalation in the region, the lari depreciated by only 2.7% before quickly returning to an appreciation trend, unlike previous episodes of volatility.
Kavtaradze added that Georgia’s macroeconomic stability remains strong and could support economic growth exceeding 7%, above current forecasts.
