National Bank of Georgia lowers foreign currency minimum reserve requirements for commercial banks
The National Bank of Georgia says that the decision will help to stabilise the national currency. Photo: Nino Alavidze/Agenda.ge.
Tweet 
Share
The National Bank of Georgia (NBG) has decreased the minimum foreign currency reserve requirements for commercial banks in Georgia from a mandatory 30 per cent to 25 per cent, which will allow commercial banks to lend the freed up five per cent – about $700 million.
The decision comes into force today.
- Minimum reserve requirements are funds which banks are required to hold as reserves in the national, central bank.
- The reserves allow banks to react to short-term changes in the money markets and help to stabilise the interest rate banks charge each other for short-term funds.
We believe that the decision will support stabilising Georgian lari and will decrease interest rates on the loans which are in USD”, the Georgian National Bank says.
According to data released in September by the National Statistics Office of Georgia (Geostat) the annual inflation rate amounted to 6.4 per cent.
As the Georgian lari depreciated, the National Bank of Georgia increased the refinancing rate twice up to 7 per cent and then up to 7.5 per cent last month.
Also, the NBG sold foreign exchange reserves of $32.8 mln [August 2019] and $40 mln [September 2019] on auction to strengthen the Georgian lari.
The National Bank of Georgia (NBG) has sold $40 million at an exchange auction on September 27, as the Georgian lari continues to depreciate. The National Bank of Georgia (NBG) increased the refinancing rate by 0.5 percentage points to 7.5 per cent on September 25.
The National Bank of Georgia (NBG) has increased the refinancing rate by 0.5 percentage points to 7.5 per cent.
The National Bank of Georgia (NBG) has increased the refinancing rate by 0.5 percentage points to 7 per cent.
The National Bank of Georgia (NBG) sold $32.8 million on exchange auction earlier today as the Georgian lari continued to devalue. One US dollar cost 2.97 GEL as of today, while based on NBG forecast, it will cost about 2.93 tomorrow.
The National Bank of Georgia (NBG) has increased the refinancing rate by one percentage point to 8.5 per cent.
A further increase in the refinancing rate is expected, announced the President of the National Bank of Georgia Koba Gvenetadze today at a session of the Budget and Finance Committee of Parliament.
The National Bank of Georgia has sold $20 mln today amid Georgian lari depreciation, announces the National Bank of Georgia.
/energy-reform.jpg)
The Georgian financial system remains resilient against potential shocks, announced the Financial Stability Committee of the National Bank of Georgia at today’s meeting.
Official international reserves of the National Bank of Georgia increased by $167 million in December 2019, show data from the National Bank of Georgia.
The National Bank of Georgia (NBG) has joined the Network for Greening the Financial System (NGFS), which is a network of Central Banks and Supervisors.