The National Bank of Georgia (NBG) has gained access to one of the world’s largest and most influential financial markets – the China Interbank Bond Market (CIBM). The access was secured as part of the cooperation launched under last year’s memorandum signed between the National Bank of Georgia and the People’s Bank of China.
According to NBG President Natia Turnava, entering China’s securities market will significantly improve the efficiency of managing Georgia’s international reserves and strengthen the diversification process. For the first time, the central bank will be able to invest part of its reserves in yuan-denominated financial instruments.
“It is essential for us that international reserves are diversified across currencies, asset types, and geographic areas. We will begin investing in the near future, which will further enhance the diversification of reserve management,” Turnava stated.
She added that the National Bank will continue expanding into new markets step-by-step, based on market conditions and risk assessments.
Turnava also noted that the NBG intends to share its experience with private and financial sector representatives to support their participation in China’s securities market.
Until now, the National Bank of Georgia has not invested any part of its reserves in Chinese assets. Currently, the majority of NBG’s $6.3 billion in reserves is held in U.S. dollar-denominated instruments. The central bank also holds monetary gold, as well as securities denominated in Euro, SDRs, and Canadian USD.
