The National Bank of Georgia published a year-end review by Governor Natia Turnava setting out the main 2025 policy actions and outcomes, including monetary policy tightening followed by normalization aimed at maintaining price stability and bringing inflation back toward forecast levels. The review also highlights the introduction of a scenario-based approach to monetary policy communication and a foreign exchange policy focused on accumulating and managing international reserves, with reserves expected to surpass USD 6 billion for the first time. The update points to further progress on larization, with 58.2% of the total loan portfolio and 77.1% of loans to individuals denominated in lari, alongside a de-dollarization trend in deposits with 52.1% denominated in lari. It also cites legislative and operational changes affecting financial consumer protection and market oversight, including a higher value threshold for cases handled by the National Bank’s Dispute Resolution Commission, the move to full supervision of virtual asset service providers, and steps to increase competition in payments and open banking such as opening settlement accounts for payment service providers. In capital markets, publicly issued corporate bond volumes exceeded GEL 1.5 billion, and the Bank reports growth in the investment funds market, completion of a transition to the SWIFT ISO 20022 standard, and an improvement of 27 places in Georgia’s Anti-Money Laundering Index ranking into the top 40. The National Bank notes that its RTGS upgrade and the introduction of an instant payment system have entered a new phase, with launch planned for 2026.
National Bank of Georgia 2025-12-31
National Bank of Georgia reviews 2025 policy and market reforms as international reserves are expected to exceed USD 6 billion
Governor Natia Turnava's year-end review of the National Bank of Georgia outlines 2025 policy actions, including monetary policy tightening to stabilize prices and reduce inflation. Key developments include scenario-based monetary policy communication, a foreign exchange policy targeting over USD 6 billion in reserves, and progress in larization and de-dollarization. Legislative changes enhance financial consumer protection and market oversight, with advancements in virtual asset supervision, payment competition, and capital markets, alongside an RTGS upgrade and instant payment system launch planned for 2026.