IMF: NBG’s accumulation of international reserves has bolstered confidence in financial markets

“The National Bank of Georgia’s accumulation of international reserves has strengthened confidence in financial markets,” reads the study published by the International Monetary Fund, which reviews the adequacy of foreign currency reserves in Georgia.

As stated in the IMF study, the growth in foreign currency reserves contributed to the successful refinancing of Eurobonds at the start of 2026. Moreover, despite rising energy prices driven by the ongoing conflict in the Middle East and potential pressure on the current account, the lari’s exchange rate has remained stable, which reflects improved confidence in the national currency against the backdrop of increased international reserve buffers. The study notes that Georgia’s current level of international reserves is adequate amid moderate stress scenarios.

The findings also indicate that it would be desirable for Georgia to maintain international reserves at approximately 145–150 per cent of the IMF’s ARA metric. The need for additional international reserves is driven by the benefits that higher reserve volumes provide: they lower the country’s sovereign financing costs, support a reduction in private-sector dollarisation, and ensure the liquidity required for central bank foreign-exchange interventions to mitigate excessive exchange-rate volatility.

The findings suggest that there remains room for further accumulation of international reserves, particularly given the elevated level of global uncertainty. The IMF study also notes that the National Bank’s existing price-based framework for conducting foreign exchange interventions is consistent with the pace and scale of current international reserve accumulation. It is also calibrated to simultaneously preserve exchange rate flexibility in response to changes in external conditions.

The National Bank of Georgia continues to replenish its international reserves. In May 2026, the NBG’s net purchases amounted to 632.9 million US dollars, with total international reserves exceeding 7 billion US dollars.