The National Bank of Georgia highlighted an International Monetary Fund study concluding that Georgia's current level of international reserves is adequate under moderate stress scenarios and that there is still room to build reserves further. The study says reserve accumulation has strengthened confidence in financial markets, helped support the successful refinancing of Eurobonds at the start of 2026, and coincided with a stable lari despite higher energy prices linked to the war in the Middle East and possible pressure on the current account. According to the study, Georgia would benefit from holding reserves at about 145% to 150% of the IMF's Assessing Reserve Adequacy metric. Higher reserves can reduce sovereign funding costs, support lower private sector dollarization and provide liquidity for foreign exchange interventions to smooth excessive exchange-rate volatility. The study also finds that the National Bank of Georgia's existing price-based foreign exchange intervention framework is appropriate for calibrating the pace and scale of reserve accumulation while preserving exchange-rate flexibility. The central bank said it will continue replenishing reserves. Its net purchases reached USD 632.9 million in May 2026, lifting gross international reserves to more than USD 7 billion as of May.
National Bank of Georgia2026-06-26
National Bank of Georgia says IMF study supports further reserve accumulation as reserves exceed USD 7 billion
The National Bank of Georgia cited an IMF study finding that Georgia's international reserves are adequate under moderate stress and that there is scope to continue building them. The study links higher reserves to stronger market confidence, lower financing costs and support for foreign exchange interventions while preserving exchange-rate flexibility. The central bank said its May 2026 net purchases totaled USD 632.9 million, with gross reserves rising above USD 7 billion.