NBG Vice Governor: Record foreign reserves safeguard macroeconomic stability and shelter Georgia against external shocks

“High foreign currency reserves are the ultimate guarantor of a nation’s macroeconomic stability, providing critical protection against external shocks, particularly for a small, open economy. Substantial reserve buffers instil strong investor confidence and underpin sustainable, long-term economic development,” First Vice-Governor of the National Bank of Georgia (NBG) Ekaterine Mikabadze stated when evaluating the central bank’s record-breaking reserve figures.

As of August, Georgia’s gross international reserves hit an all-time high of USD 8.14 billion, a USD 613 million increase compared to the previous month and a year-on-year surge of 56.4%. Reserve adequacy indicators have also strengthened considerably: foreign reserves currently stand at 128.2%, comfortably surpassing the 100% threshold prescribed by the International Monetary Fund (IMF) methodology.

Mikabadze added that during the first seven months of 2026, the central bank purchased over USD 2.5 billion on the foreign exchange market.

“Crucially, the long-term policy of the NBG is geared towards building reserves and managing reserve assets efficiently. Consequently, whenever macroeconomic conditions and foreign exchange market dynamics allow, the NBG proactively accumulates reserves,” Mikabadze noted.

The First Vice-Governor also highlighted the NBG’s strategic decision to diversify international reserves into physical gold.

“The NBG’s strategic decision to diversify reserves into gold has proven exceptionally positive. Following a significant rally in gold prices, the value of monetary gold held within our reserves has virtually doubled, reaching $1.149 billion as of August—accounting for 14.1% of total gross international reserves,” the Vice-President remarked, as cited in the press statement of the National Bank of Georgia.