The Governor of the National Bank of Georgia took part in the first meeting of the European and Central European Leaders' Association of Euromoney. The video conference focused on defining the mandate of central banks and monitoring systemic risks.

 

According to Koba Gvenetadze, ensuring price stability in the medium term is the main mandate of the National Bank of Georgia, similar to other banks with an inflation targeting regime. "At the same time, we must ensure the stability and transparency of the financial system and promote sustainable growth of the national economy, so as not to jeopardize the accomplishment of the main task," said the Governor of the National Bank of Georgia during the discussion. In his assessment, inflation may deviate from the target in the short run, due to single exogenous shocks, which is sometimes misguidedly perceived as price volatility.”

 

"Undoubtedly, the pandemic-driven fiscal stimulus, the rise of deferred demand and the disruption of supply chains have triggered global inflationary pressures. With Georgia being no exception, a double-digit inflation recorded since the second half of 2021, has led the National Bank of Georgia to maintain a strict monetary policy throughout the year. As the NBG is using its tools in a timely manner, we expect that the current level of inflation in Georgia will prove to be temporary," - Governor Gvenetadze noted.

 

The participants discussed the importance of incorporating the environmental and social responsibility issues in the global financial system, as one of the contributors to sustainable development, where the role of central banks is crucial. Governor Gvenetadze briefly reviewed the National Bank’s 2021 Sustainable Finance Report, noting that the National Bank of Georgia is the region’s leader in this regard.

 

Established at the initiative of Euromoney in 2022, the Central Bank Leaders' Association aims to exchange views and share experiences among members. The first meeting of the Central Bank Leaders Association was attended by top bankers of Central and Eastern Europe.