The National Bank of Georgia is considering increasing the share of gold in the country’s foreign exchange reserves, the President of the National Bank of Georgia, Natia Turnava, said at a plenary session of Parliament.
Gold currently accounts for 16.4% of Georgia’s reserves, or $1.06 billion, and this share is expected to rise to 25% of total reserves, valued at $6.47 billion. The central bank is therefore considering additional purchases of around $500 million in gold.
Turnava said the move is aimed at diversifying foreign exchange reserves and aligning Georgia with global central bank trends.
“The main rationale was the diversification of our foreign exchange reserves. By the way, this decision has recently been made by the central banks of a number of leading countries. Some had accumulated historical reserves years ago, others have recently purchased them, but if you look at the statistics, the share of gold in reserves is growing,” Turnava said.
She added that gold serves as a long-term hedge against inflation and external shocks, despite short-term price volatility.
“Due to increased external shocks or unpredictability, gold is an asset that retains its value well in the long term. The price is volatile in the short term, but in the long term, in a 20-25 year perspective, it hedges or insures inflationary risks, which is why we made this decision,” Turnava said.
She also noted that while the bank has already gained from previous gold purchases, short-term profit was not the objective, with diversification remaining the key goal.
