The NBG Governor continues to hold working meetings in Washington DC within the framework of the Annual Meetings of the International Monetary Fund and the World Bank. Koba Gvenetadze took part in the panel discussion Capacity Development Talks where the participants discussed the sustainability of the financial sector.

 

In his speech, the NBG Governor focused on the actions taken by the National Bank of Georgia. He explained how the financial sector of Georgia was able to successfully resist the rather severe phase of the shock caused by the pandemic. The Georgian central bank leader elaborated on how the adequate policy of the NBG helped the country face the potential threats arising from the situation in the region.

 

Koba Gvenetadze spoke in detail about the financial stability framework, the macroprudential policy that the National Bank of Georgia implements to safeguard financial stability. Further, he focused on stress tests that imply introducing capital requirements for commercial banks that are sufficient for the stressful period.

 

The Georgian central bank leader shared the experience of Georgia with other central bankers and finance ministers attending the meeting. He described how the NBG developed the projects and initiatives initiated within the framework of the International Monetary Fund and technical assistance programs.

 

 

“At the beginning of 2020, IMF technical mission visited Tbilisi and helped us enhance communication framework, tools and practices. We all know that under inflation targeting communication is an important policy tool to anchor inflation expectations and achieve price stability. IMF TA advised us on how to formulate policy messages, especially on foreign exchange interventions and the exchange rate in the context of inflation targeting; In line with those advice we are working on foreign exchange interventions strategy which should be finalized by end of this year.” Koba Gvenetadze stated.

 

The executives of the International Monetary Fund and the World Bank, as well as representatives of the economic teams from almost all countries of the world, participate in the Annual Meetings of October 10-16.