The National Bank of Georgia on Wednesday “categorically” rejected “misinformation” circulating on social media regarding alleged restrictions on foreign currency deposits and transfers at domestic commercial banks, emphasising there were “no limitations” on conversion of deposits into foreign currency or on transfers of funds abroad.
The central bank reassured the public about the stability of the banking sector, noting it had been “strengthened by recent policies and positive macroeconomic trends”.
"Domestic banks have sufficient buffers to withstand even the most severe shocks. The total volume of liquid assets exceeds GEL 18 billion and is primarily held in foreign currency. There is no threat to deposit services”, the NBG said.
"If necessary, banks have access to additional credit lines and can raise funds from foreign financial institutions. Furthermore, the NBG has various tools available to support the sector if the need arises”, the body added.
Furthermore, the central bank also said fluctuations of the Georgian national currency, the lari, were driven by “current processes”, in comments that come amid political instability during ongoing protests in the country against the Government's decision to suspend the country's European Union accession talks until 2028.
Otherwise, stable inflows and strong fundamentals ensure stability in the foreign exchange market”, the Bank said.
The body concluded customers could manage their deposits and conduct foreign currency conversions and transfers “as usual”. It also urged the public to “refrain from spreading and sharing this type of misinformation”, adding “every such misinformation spread creates unwarranted panic and is damaging to the financial sector”.
