Koba Gvenetadze Participated in World Bank Executive Forum
Governor of the National Bank of Georgia in his speech, elaborated detailed on the importance of de-dollarization, maintaining floating exchange rate and inflation targeting. He noticed, that "Phasing out of major central banks', especially federal reserve system, accommodative monetary policies would be transmitted to highly dollarized economies through various channels. On one side, strengthening of the US dollar in theory should support emerging markets' economies through improved trade balances. Having said that, dollarized economies cannot fully take advantage as domestic currency depreciation increases their debt service costs, which has negative effect on the overall demand."
Governor of National Bank of Georgia stressed during such periods the importance of maintaining the floating exchange rate and inflation targeting regime, which is the best way to deal with such shocks, in the short-term period. Koba Gvenetadze mentioned, that de-dollarization measures significantly decreases major central banks' monetary policy possible negative influence on the countries similar Georgia.
Governor of the National bank of Georgia visited United States on April 18 to attend the Spring Meetings of the International Monetary Fund and the World Bank Group. During the visit, Koba Gvenetadze met with the Deputy Managing Director of IMF, Tao Zhang, the Director of the Middle East and Central Asia Department at the International Monetary Fund, Jihad Azour, Vice-President, World Bank's Europe and Central Asia region, Cyril Muller. Governor of National bank of Georgia met with Deputy Director-General-Directorate-General Neighborhood and Enlargement Negotiations, Katarina Mathernova, Head of the IMF Mission for Georgia- Mercedes Vera-Martin and other members of the mission. Koba Gvenetadze also met representatives of Monetary and Capital Markets Department and US Treasury Department, to discuss planned issues of technical support for the National bank of Georgia.
The Spring Meetings of the International Monetary Fund (IMF) and the World Bank Group (Bank) each year bring together central bankers, ministers of finance and development, private sector executives, and academics to discuss issues of global concern, including the world economic outlook, poverty eradication, economic development, and aid effectiveness. Also featured are seminars, regional briefings, press conferences, and many other events focused on the global economy, international development, and the world's financial system.