The accumulation of international reserves by the National Bank of Georgia (NBG) has strengthened financial market confidence, according to a recent study published by the International Monetary Fund (IMF), which assesses the adequacy of international reserves in Georgia.

The IMF study notes that the increase in foreign exchange reserves contributed to the successful refinancing of Eurobonds in early 2026. Furthermore, despite rising energy prices driven by the ongoing war in the Middle East and potential pressures on the current account, the GEL exchange rate has remained stable. This reflects improved confidence in the national currency, supported by stronger international reserve buffers. The study concludes that Georgia’s current level of international reserves is adequate under moderate stress scenarios.

The findings also indicate that the optimal level of international reserves for Georgia should ideally be around 145–150 percent of the IMF’s ARA (Assessing Reserve Adequacy) metric. The need for further reserve accumulation is supported by the strategic benefits associated with higher reserve levels: reducing sovereign financing costs, supporting a decline in private sector dollarization, and ensuring sufficient liquidity for potential foreign exchange interventions by the NBG aimed at mitigating excessive exchange rate volatility.

The study results suggest that there remains room for further accumulation of international reserves, particularly amid elevated levels of global uncertainty. The IMF also highlights that the NBG’s existing price-based approach to foreign exchange interventions is appropriate for calibrating the pace and scale of reserve accumulation, while maintaining 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 foreign exchange purchases amounted to USD 632.9 million, while the total volume of international reserves exceeded USD 7 billion as of May 2026.