Central Bank Head: Georgia’s involvement in sanctions on Russia praised by regulators
The Bank Head also stressed the importance of maintaining a “strict” monetary policy in Georgia, noting the tightened approach would continue until the easing of high inflation. Photo: National Bank of Georgia
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The Georgian finance system’s joining of the international sanctions imposed against Russia due to its invasion of Ukraine has been praised by the international regulators, Koba Gvenetadze, the Head of the National Bank of Georgia said on Wednesday.
Gventadze noted the country’s finance system was in “complete compliance” with the sanctions imposed by the United States, the United Kingdom and the European Union on Russia since the launch of its military campaign in late February.
As of today [...] we have not heard anything other than a positive assessment [by the regulators], as the [Georgian] system fully addresses the sanctions provided by these jurisdictions,” Gvenetadze said.
The Bank Head also stressed the importance of maintaining a “strict” monetary policy in Georgia, noting the tightened approach would continue until the easing of high inflation.
The annual inflation rate in April totalled 12.8 percent, while the NBG increased the refinancing rate by 0.5 percentage points to 11 percent in late March.
The National Bank of Georgia (NBG) has decided to increase the refinancing rate by 0.5 percentage points to 11 percent on Wednesday at its Monetary Policy Committee (MPC).
The Consumer Price Index in Georgia grew by 1.8 percent in April 2022 month-on-month, while the annual inflation rate totalled 12.8 percent, the National Statistics Office of Georgia announced on Tuesday.
A prospect of sanctioned Russian products entering the European Union through Georgia is “inconceivable,” Georgian Finance Minister Lasha Khutsishvili said on Monday, noting “not only Georgia but also the EU has a lot of control” over preventing the scenario.
The need for the central banks’ “vigilance” and monetary authorities’ “strong reaction” to a prolonged high inflation were the subjects raised by Koba Gvenetadze, the Head of the National Bank of Georgia, at a conference organised by the Columbia University, the Bank announced on Tuesday.
The National Bank of Georgia anticipates an average of nine percent inflation in the country this year, Koba Gvenetadze, the head of the Bank, said on Wednesday.
Levan Davitashvili, the Georgian Economy Minister, on Wednesday said the country was part of “all international decisions on the sanctions” imposed by the international community against Russia due to its invasion of Ukraine, and adhered to the agreements with Georgia’s international partners.
The National Bank of Georgia is keeping the refinancing rate unchanged at 11 percent following a meeting of its Monetary Policy Committee on Wednesday.
Uncertainty over macroeconomic trends is high amid the Russia-Ukraine war, but Georgia's financial system is ready to withstand stress, the National Bank of Georgia said on Wednesday.
Koba Gvenetadze, the Governor of the National Bank of Georgia, joined a conference involving central bankers and high-ranking representatives from states across the Baltic, Adriatic and Black seas in Poland to discuss monetary policy, economic consequences of the Ukraine war and other matters on June 10.
Archil Mestvirishvili, the Acting Governor of the National Bank of Georgia, on Monday said compliance with international sanctions imposed on Russia for its invasion of Ukraine was “very important”, and the Georgian financial sector was taking the matter “very seriously”.