“As a result of the National Bank's monetary policy, inflation remains around the target level,” said Natia Turnava, President of the National Bank of Georgia.
According to Turnava, Georgia’s banking sector is well-capitalized, with strong asset quality and sufficient buffers—conditions that help the financial system withstand growing global uncertainties.
“Our monetary policy ensures price stability. Since 2023, inflation has largely remained below the 3% target. The average inflation rate for 2023–2024 was 1.8%. As of May, it stands at 3.5%, which aligns with our forecast and remains close to the target. The IMF also predicts that average inflation will be 3.4% this year and return fully to target in 2026. Overall, our policy actions continue to keep inflation near target,” she stated.
Turnava also emphasized the National Bank’s commitment to financial stability, noting that while the outlook remains positive, continued effort is essential to maintain a resilient financial sector.
“Our financial sector is in good shape, but we recognize the need to address emerging risks to preserve that strength. One such challenge is unhedged loans. To mitigate the impact of exchange rate fluctuations on both consumers and the financial market, we are steadfast in implementing our larization policy,” she said.
She further highlighted the importance of rebuilding international reserves:
“Replenishing reserves remains a top priority. Recently favorable conditions—especially strong foreign exchange inflows—enabled us to offset the currency sales we had to make last fall. Current data shows that we have already exceeded last year’s sales, and we will continue to work actively in this direction.”
The President also noted the IMF’s recognition of the NBG’s effective monetary and financial policy, especially its role in promoting larization and preserving macroeconomic stability.
