NBG
Posted: 1 month ago

Natia Turnava: 2025 FX Reserve Purchases Surpass Last Year’s Net Sales, Reinforcing NBG Strategy

President of the National Bank of Georgia (NBG) Natia Turnava announced that the Bank’s foreign exchange reserve purchases in 2025 have already far exceeded last year’s net sales, underlining the NBG’s continued commitment to reserve accumulation and financial stability.

Presenting the NBG’s 2024 annual report to Parliament, Turnava highlighted the strategic role of international reserves in safeguarding macroeconomic stability, especially amid external market volatility. She noted that as of April 2025, Georgia’s official reserve assets totaled $4.5 billion, up from $4.4 billion in December 2024.

“International reserves are a key guarantor of the country’s macroeconomic stability,” Turnava said. “Our long-term policy remains focused on accumulating reserves and managing assets effectively. This year, we have not sold foreign currency—only purchased. Our net purchases in 2025 already exceed the $434.75 million in net sales recorded in 2024.”

Turnava explained that favorable market conditions early in 2024 allowed for reserve accumulation through FX interventions. While short-term exchange rate volatility emerged in the second half of the year, driven by market expectations rather than fundamentals, the NBG resumed reserve purchases once stability returned.

The report also addressed the diversification of reserve assets, particularly the central bank’s investment in gold. In March 2024, the NBG purchased $500 million worth of monetary gold, which had increased in value by $99 million by year-end. As of April 2025, the value of that gold had risen by $257.7 million due to global price appreciation.

“This sharp increase reaffirms the soundness of our diversification strategy,” Turnava said.

The NBG will publish updated FX market intervention data at the end of May.