National Bank Acting Governor: foreign exchange reserves at “historic high”, within limits
Natia Turnava, the Acting Governor of the NBG said the country’s foreign exchange reserves were at a “historic high” and within the limits of an “adequate level”. Photo: NBG
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Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday said the country’s foreign exchange reserves were at a “historic high” and within the limits of an “adequate level”, in comments at the session of the Finance and Budget Committee of the Parliament.
Turnava told the meeting the volume of international currency reserves had equalled $5.1 billion by October.
Keeping foreign exchange reserves at an adequate level helps minimise the country's sovereign risk, which is a positive factor for investments and macroeconomic stability”, she said.
The Acting Governor said the Bank was replenishing international currency reserves “more actively” during 2023, in order to moderate the “excess fluctuations” in the background of the recently increased foreign currency inflows and maintain the international currency reserves within the adequate level.
As of October 2023, taking all interventions into account, international reserves were at $1.292 billion”, she said.
Turnava presented the draft of the main directions of the monetary and credit and currency policy for the next three years, which she said would ensure price stability in the medium term.
She also mentioned the “low” inflation, which in November decreased by 0.2 percent compared to the previous month, with the annual inflation rate at 0.1 percent, adding the outcome was the result of “lower inflationary expectations” amid a “tight” monetary policy.
[Over the past] year, the strengthening of the [national currency] exchange rate, together with the gradual reduction of the effects of external shocks, significantly contributed to the decrease of imported inflation and led to the decrease of the total inflation”, the official said.
The Acting Governor also noted the Government's policy, aimed at fiscal consolidation and measures to strengthen competition in individual commodity markets, had made a “positive” contribution to the process of reducing inflation.
Following the current macroeconomic forecast of the National Bank, inflation will remain below the target rate of three percent until the end of 2023, while in the medium term it will stabilise around the three percent target.
Georgian Economy Minister Levan Davitashvili on Tuesday said there were “no preconditions” for an increase in the commercial gas tariff causing a rise in bread prices across the country.
Prices of certain food products and non-alcoholic beverages, furnishings, household equipment and maintenance, as well as healthcare decreased month-on-month across Georgia in November, the National Statistics Office said on Monday.
New transparency requirements will come into play for financial organisations operating in Georgia starting April 1 in a bid to better protect the rights of consumers, the National Bank announced on Friday.
The gross external debt of Georgia increased by $1.4 billion during the fourth quarter of 2022 and stood at $23.5 billion at the end of the year, the National Bank said in its latest update of national debt statistics on Friday.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday defended her institution's "effective policy" and asserted its independence and alignment with international sanctions before the Parliament.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday presented draft documents for the main directions of its monetary and exchange rate policies for 2024-2026 at the Parliament.
The National Bank of Georgia on Tuesday published its latest macroeconomic scenarios, which forecast the domestic economy to grow by six percent this year and five percent in 2024.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday said the institution was expecting stability “in all segments” of the domestic financial system, including in the foreign exchange market, following a “historic” strengthening of the national currency, the lari.