Georgia’s National Bank to diversify reserves with Chinese yuan

The National Bank of Georgia (NBG) has announced plans to allocate around 5% of its international reserves in Chinese yuan, signaling a strategic shift in its investment portfolio.

The decision was confirmed by NBG President Natia Turnava, Caliber.Az reports, citing Georgian media.

Turnava highlighted that other major economies, including the European Union in 2017, Japan, Australia, and Switzerland, have taken similar steps to diversify their reserves. She also noted that the International Monetary Fund (IMF) recognizes the yuan as the fifth currency in the Special Drawing Rights (SDR) basket, alongside the US dollar, euro, Japanese yen, and British pound.

“Gaining access to China’s interbank bond market is a key milestone in the development of our investment strategy,” Turnava said, emphasizing the move’s significance for Georgia’s financial positioning and broader economic planning.

By Vafa Guliyeva