The National Bank of Georgia signed two agreements with Bank of China to expand its investment opportunities in China’s bond market and its access to derivatives for managing international reserves. The agreements were concluded during a meeting at the Tbilisi Financial Summit. Under a general investor agreement covering the China Interbank Bond Market (CIBM), Bank of China will provide the core services the central bank needs to conduct transactions in that market. This will broaden the central bank’s ability to invest in Chinese bonds. An International Swaps and Derivatives Association (ISDA) master agreement will expand access to currency and interest rate derivatives. These instruments will support the management of currency and interest rate risks in international reserves. The agreement will also support investment in CIBM and provide greater flexibility in managing the reserves’ Chinese yuan investment portfolio.
National Bank of Georgia signs agreements with Bank of China to expand bond market and derivatives access
The National Bank of Georgia signed agreements with Bank of China to widen its access to China’s interbank bond market and to currency and interest rate derivatives. Bank of China will provide services for bond market transactions, while the derivatives agreement will support risk management of international reserves and more flexible management of the Chinese yuan investment portfolio.