BAKU, Azerbaijan, February 23. The National Bank of Georgia (NBG) has outlined its strategy to diversify international reserves through investments in Chinese yuan and access to the China Interbank Bond Market (CIBM) at a meeting with financial sector representatives, Trend reports via the NBG.
The meeting brought together representatives of the Ministry of Finance, the Ministry of Economy and Sustainable Development, as well as commercial banks, brokerage companies, asset managers, and financial infrastructure providers.
Participants were introduced to examples of countries already investing in yuan-denominated assets. To this account, Japan has invested the equivalent of $10 billion in Chinese assets and Australia—$1.9 billion—while Switzerland has an investment quota of 15 billion yuan, equivalent to around $2.4 billion. In addition, the European Central Bank made its first investment in Chinese securities in 2017, amounting to 500 million euros.
The NBG stressed that this practice demonstrates that investments in Chinese yuan and Chinese securities represent a standard and proven diversification tool for central banks.
The opportunity to operate in Chinese financial markets has expanded after the National Bank of Georgia gained access to the China Interbank Bond Market (CIBM), one of the largest financial markets globally.
“Gaining access to CIBM is an important stage in the development of the National Bank of Georgia’s investment policy. It allows us to manage international reserves more flexibly and effectively, expand the range of investment instruments, and strengthen the risk management framework,” said NBG President Natia Turnava.
Turnava noted that investments in Chinese yuan and Chinese government securities are aimed at diversification. The share of non-core currencies in reserves is set at 10%, of which around 5% will be allocated to yuan instruments.
“It is important for Georgia that international reserves are diversified both in terms of currencies, asset types, and geographical area. This approach reduces concentration risks and ensures sustainable management of reserves. The National Bank of Georgia will continue to manage international reserves in accordance with a conservative, low-risk, and diversified investment policy, taking into account best international practices,” she added.
The National Bank of Georgia (NBG) is the independent central bank of Georgia, established in 1919 and operating as such since 1991. It serves as the nation's financial regulator, responsible for maintaining price stability, implementing monetary policy, managing official foreign exchange reserves, and supervising the banking sector to ensure financial stability.
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