National Bank of Georgia buys another $100 mln worth of gold

TBILISI. June 10 (Interfax) - The National Bank of Georgia (NBG) has purchased $100 million worth of gold bars to diversify its international reserves, the NBG said.

"As a result of this purchase, the share of monetary gold in the National Bank of Georgia's international reserves will reach 15.5%. It is worth noting the upward trend in international reserves, which has resulted in reserves reaching a historical maximum of $7 billion [as of June 1]," the NBG said.

Moreover, the reserve volume exceeds the reserve adequacy ratio according to the International Monetary Fund's methodology by 14.8%.

The gold reserves were replenished as part of the NBG's long-term strategy to diversify its reserve assets. The NBG noted that monetary gold is a widely recognized reserve asset by central banks worldwide, helping to increase portfolio resilience to geopolitical risks.

"In parallel with the growth of international reserves, the NBG will continue to consider diversification opportunities and make decisions in line with long-term strategic goals and best international practices," the statement noted.

At the end of May, NBG President Natia Turnava announced that the National Bank plans to invest another $500 million in gold, increasing its share of international reserves to 25%.

As previously reported, the NBG in March 2024 purchased 7 tonnes of gold worth $500 million. The value of monetary gold in the National Bank's reserves has doubled since then to $1.04 billion at the beginning of June.

As on June 1, the National Bank's reserves had reached $7 billion, up 13.7%, by $842.6 million, since the beginning of the year, including an 8.2% increase in May ($531.2 million). The share of gold in reserves as of June 1 was 14.9%.