Prime Minister Irakli Kobakhidze responded to journalists’ questions on why the National Bank of Georgia (NBG) decided to place part of its reserves in Chinese yuan-denominated bonds, saying: “The National Bank explains all its decisions.”
Kobakhidze praised the central bank’s performance since the leadership change, noting its success in both monetary and fiscal policy. “Since the new leadership, under Natia Turnava and the new NBG Board, the bank has been working very successfully. Our foreign exchange reserves are at record levels. In January alone, reserves increased by $141 million. The lari is stable, inflation is properly regulated. Last year we had 4% inflation, the year before 1.9%, with an average below 3%, which is within target. Overall, I highly appreciate the National Bank’s work in all areas: reserves, the lari exchange rate, and monetary and fiscal policy,” he said.
NBG Governor Natia Turnava explained that accessing the China Interbank Bond Market (CIBM) will significantly improve the efficiency of managing Georgia’s international reserves and support their diversification.
The NBG gained access to CIBM through cooperation established with China’s central bank under a memorandum signed last year, allowing Georgia to invest in one of the world’s largest and most important financial markets.
