National Bank of Georgia adds monetary gold to its int’l reserves for first time
The National Bank of Georgia on Monday added monetary gold to its international reserves for the first time thanks to a "record amount" of $1.5 billion purchased in the domestic foreign exchange market. Photo: NBG
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The National Bank of Georgia on Monday added monetary gold to its international reserves for the first time thanks to a "record amount" of $1.5 billion purchased in the domestic foreign exchange market.
The Bank said the purchase had “significantly” increased the volume of reserves, with Acting Governor Natia Turnava saying the institution aimed to “always try to increase our international reserves, because this is the so-called safety cushion of our country”.
Now we are not only increasing the reserves, but also diversifying them, and for the first time in our country, the central Bank will include gold in international reserves as one of its reliable and always valuable assets”, she added.
The body added it had spent $500 million to purchase seven tons of “highest standard” gold bars from the London Gold Bullion market. The purchase accounts for approximately 11 percent of the country's total international reserves.
While the bars are currently stored in London, the National Bank plans to bring them to Georgia and store them in its warehouse.
Davit Utiashvili, the Head of Financial Stability Department at National Bank of Georgia, on Tuesday said the Bank's purchase of about $1.7 billion over the past year and a half had not prevented the national currency lari from “historic strengthening”.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Monday said the exchange rate of the national currency was showing a “historic” level of strengthening, adding the dynamic was “greatly contributing” to reduction of domestic inflation.
The National Bank of Georgia on Monday published an analysis of the current situation and macroeconomic parameters in the country's banking and financial sectors, reviewing inflation, deposits and loans with dollarisation share in the portfolio and foreign sector.
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.