The National Bank of Georgia (NBG) has amended the rules for calculating minimum reserve requirements for commercial banks. Under the new regulation, 50% of the value of banks’ foreign-currency-denominated certificates of deposit will be included in the calculation. The amendment was approved by an order signed by NBG President Natia Turnava on October 20.
Banks will begin calculating reserve requirements under the new rules on November 3, 2026, and must comply with the relevant requirements from December 3.
Minimum reserve requirements determine how much money commercial banks must hold in reserve at the central bank. The required reserve ratio for foreign-currency funds depends on a bank’s deposit dollarization level: it is 20% when dollarization reaches or exceeds 70%, and 10% when it is 40% or lower, with a proportional rate applying between those levels.
The NBG’s order amends the regulation governing reserve requirements, which dates back to 2011. The document does not specify how the change will affect individual banks’ reserve obligations, which will depend partly on the volume of foreign-currency certificates of deposit they have issued.
