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.


Stay up-to-date with more news on Trend News
Agency's WhatsApp channel