World Bank praises NBG’s reserve management policy

The World Bank Treasury has positively assessed the National Bank of Georgia’s (NBG) development of its reserves management policy.

"NBG’s progress was impressive. The reserve management in NBG is in accordance with the world’s leading practice and is a good example for the region’s other developing countries,” said the World Bank Senior Manager of Reserves Advisory and Management Program (RAMP) Christian Mulder while on an official visit to Georgia on June 3.

Mulder met NBG Vice President Archil Mestvirishvili yesterday to outline the achievements of the bank’s reserves management policy and the main direction of the bank’s monetary policy.

"We made an active transition from passive management of exchange reserves to active management of the portfolio. This means implementing the modern methods by using the financial instruments,” said Mestvirishvili.

"An active style of reserves management allowed us to experience double income, taking into account the exchange rates on the global markets. It would not have been possible if a passive management style was implemented,” said Mestvirishvili.

The World Bank has provided support for central banks in different countries since 2001. Georgia joined this group in 2009.