Georgia’s central bank celebrates 100th anniversary in 2019
Members of the borad of the State Bank of Georgia at its launch event. Photograph preserved at the National Archives of Georgia.
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This year the National Bank of Georgia (NBG) is celebrating the 100th anniversary of its foundation with number of events planned throughout the year.
Different competitions, exhibitions, conferences, and historical and cultural events will be held during the year in celebration of the 100th anniversary.
Georgia's first central bank was established in 1919.
Earlier, the Democratic Republic of Georgia did not have its own organisation for the regulation and management of a credit system.
Used throughout the years of independence, the Georgian bond (rouble) was issued in the amount of nearly 17 million between 1919-1921. The photograph shows a bond of 500 roubles that bore facsimiles of the government chairman on the left and the finance minister of the right. Preserved at the National Archives of Georgia.
After the collapse of the Russian Empire, the Tbilisi Department of the former Imperial Bank of Russia was left to fulfil the duties of a central bank, having had no relations with the Imperial Bank since 1917.
The duty of the Tbilisi Department was to dispose of funds received from the Treasury in accordance with the directives of the Minister of Finance. The work was overseen by a special commissar appointed by the Minister of Finance of Georgia.
At the end of 1918, Giorgi Zhuruli, the Minister of Finance, Trade and Industry, presented a draft bill to the Republican Government on the establishment of a state bank and the relevant by-laws. However, for several reasons the Constituent Assembly postponed its approval until the end of 1919.
The 5,000 rouble bond with notes in French and Russian languages in addition to Georgian. Preserved at the National Archives of Georgia.
At that time, representatives of financial circles believed that the independent State Bank of Georgia should be founded on new principles - the state bank should not appear to be under the influence of either private shareholders or the Minister of Finance (as was the case in Russian Banking practice). In that spirit, the State Bank of Georgia was modelled on the example of the State Bank of Sweden, which enjoyed an excellent reputation at the time.
The State Bank of Georgia only started functioning in July 1920. The main function of the bank was to ensure the stability of money circulation and the banknotes of the republic, as well as issuing short-term loans for the development of trade, industry and agriculture. Famous Georgian financier and banker Iason Lortkipanidze was elected as the First Manager of the State Bank of Georgia.
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The National Bank of Georgia (NBG) decreased its refinancing rate by 25 basis points following today’s advice from the Monetary Policy Committee (MPC).
The National Bank of Georgia (NBG) has purchased $15 million at foreign exchange auction to control the national currency’s changing value against the US dollar.
The National Bank of Georgia (NBG) will use a new instrument, FX Options, to replenish its international reserves.
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The National Bank of Georgia (NBG) decreased its refinancing rate by 25 basis points following today’s advice from the Monetary Policy Committee (MPC).
Children put forward new designs for 100 GEL bill
Schoolchildren in nine regions of Georgia have created designs for 100 GEL banknotes for a competition announced by the National Bank of Georgia in celebration of the 100th anniversary of its foundation.
Banknotes worth 100 GEL have been found to be the most commonly counterfeited in Georgia, says the annual report of the National Bank, followed by 50 GEL and 20 GEL notes.
New regulations on responsible lending practices that came into force on January 1, 2019 have reduced financial stability risks, reports the Financial Stability Committee of the National Bank of Georgia (NBG).
The National Bank of Georgia will release new 10 GEL bills starting October 1. Old banknotes will remain valid tender. President of the National Bank of Georgia Koba Gvenetadze presented the new banknotes today.
The National Bank of Georgia and its educational platform Finedu on Tuesday launched a campaign for enhancing financial education among children, with the move coincided with the annual World Savings Day, a date aimed to raise awareness on the significance of prudent financial planning.