NBG to Cut Dollar Purchases in July

The new report projects ADB member countries to grow by 4.9% in 2026, down 0.2 percentage points from its April forecast. The bank attributes the decline to ongoing conflicts in the Middle East, disruptions in energy markets and inflationary risks from rising fuel prices. As for the following year, 2027, the global growth forecast remains unchanged at 5.1%, which indicates a gradual weakening of this pressure.In the Caucasus and Central Asia region, the economy is forecast to grow by 3.8% in 2026 and 4.2% in 2027. The deterioration in regional indicators occurred mainly at the expense of several neighboring countries: Armenia: Growth forecast reduced from 5.5% to 5%, which is related to new trade restrictions imposed by Russia. Turkey: Forecast reduced from 3.6% to 3.1% due to high fuel and fertilizer prices. Turkmenistan: Expectations decreased to 6.3%, as the use of alternative trade routes bypassing Iran increased transportation costs. For other countries in the region, like Georgia, the ADB left its expectations unchanged. The economic growth forecast for Azerbaijan is still 2%, for Kazakhstan - 4.8%, and for Uzbekistan - 6.7%.Although the growth rate of Georgia's GDP remains stable, the bank revised its inflation forecast for the country, increasing the figure from 3.8% estimated in April to 4.9%.Among the leading economies in Asia, the bank reduced its growth expectation for India from 6.9% to 6.6%, while leaving the forecasts for China (4.6%) and Indonesia (5.2%) unchanged.

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The conference focused on the practical application of Georgian Government Bond Indices and the prospects for developing index-based investment products.The conference followed a significant milestone achieved in February 2026, when, for the first time in history, seven Georgian Government Bond Indices were published with the support of the NBG. Developed by the Intercontinental Exchange (ICE), these indices became available through both Bloomberg (Bloomberg IND) and the ICE Index Portal (indices.ice.com).The conference was opened by Ekaterine Mikabadze, First Vice Governor of the National Bank of Georgia. In her welcoming remarks, she emphasized the importance of capital market development, the practical significance of market indices, and their role in the development of investment products.According to Ekaterine Mikabadze, the publication of these indices marks a major step forward in the evolution of Georgia's financial market."Over the past few years, Georgia has made significant progress. Today, we have a well-developed government securities market, robust market infrastructure, a Delivery Versus Payment (DVP) settlement system, and a modern regulatory framework for investment funds and asset managers. In addition, the funded pension system is becoming an increasingly important long-term investor in the local economy. The ICE Georgian Government Bond Indices add a fundamental building block to this ecosystem. They serve as a globally recognized benchmark and cover the GEL-denominated sovereign yield curve with maturities of up to 10 years. Using the ICE indices enables portfolio management based on the risk-return characteristics of treasury bonds, facilitates the development of tailored investment mandates, and ultimately supports the creation of index-linked investment products tied to the Georgian government bond market," noted Ekaterine Mikabadze.During the conference, representatives of the NBG's Financial Markets Department and Securities Market Supervision Department delivered presentations on the strategic vision for the development of Georgia's financial market, as well as the regulatory and tax framework governing investment funds.Panel discussions focused on the practical steps required to establish index-based investment funds in Georgia, international best practices in ETF development, and ways to strengthen the investment market ecosystem and further develop the supporting financial infrastructure.The conference brought together representatives of the Intercontinental Exchange (ICE), as well as executives and professionals from local and international financial institutions, asset management companies, investment fund managers, and the banking sector.On the second day, the conference continued with bilateral meetings between local financial market participants and ICE representatives.

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MFO "Express Capital +" was sanctioned with 4,300 GEL for irregularity (violated the Financial Monitoring Service rule, did not record the transaction). It also provided incorrect information to the regulator.MFO "Cross Credit" was fined with 6,000 GEL, "Georgian Capital" with 1,000 GEL.MFO "Invest Georgia" was sanctioned with 17,000 GEL. The MFO provided false information on transactions to the NBG. 2 were fined with 4,000 GEL.9,000 GEL was issued for failing to take into account risk factors in the case of 3 clients.

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According to the National Bank of Georgia's monthly review, in May, compared to the previous month, the average exchange rate of the lari against the US dollar strengthened from 2.6955 to 2.6806 (by 0.6%), and against the EUR from 3.1481 to 3.1315 (0.5%).At the end of May, the official exchange rate of the lari against the USD and EUR amounted to 2.6693 and 3.1079. During this period, the maximum exchange rate value was 2.6916, the minimum - 2.6693 (04/2026 - 2.70%, 2.69%, respectively). In April, the GEL strengthened by 0.9% against USD , but it strengthened less against the EUR, depreciating by 0.1%.

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According to him, events of this nature are very important for the success of the Georgian economy.“The Georgian market is one of the main attractive countries for international investment,” said the Managing Director of Emerging Markets at Barclays Investment Bank.The two-day international conference organized by the NBG was dedicated to the important project achieved in February 2026, when, for the first time in history, seven indices of Georgian government bonds were published with the support of the National Bank of Georgia. The indices were developed by Intercontinental Exchange (ICE) and made available through both Bloomberg (Bloomberg IND) and the ICE indices portal (indices.ice.com).

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The international conference "Perspectives for the Development of the Georgian Financial Market - Indices and Exchange-Traded Investment Funds" was dedicated to the practical use of Georgian government bond indices and the prospects for the development of index-based investment products."I would like to congratulate the National Bank of Georgia on such an important step as the publication of ICE indices in Georgia and the integration of the Georgian securities market into it. Both local and international asset managers are actively involved in the local market. We welcome and look forward to any new initiative of the National Bank, which will further increase market liquidity and attract more foreign investors," said Adrian Petreanu.The two-day international conference organized by the NBG was dedicated to the important project achieved in February 2026, when, for the first time in history, seven indices of Georgian government bonds were published with the support of the National Bank of Georgia. The indices were developed by Intercontinental Exchange (ICE) and became available through both Bloomberg (Bloomberg IND) and ICE's indices portal (indices.ice.com).

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The event was dedicated to the practical application of Georgian government bond indices and the prospects for the development of index-based investment products.The conference builds on a significant project achieved in February 2026, when, for the first time in history, seven Georgian government bond indices were published with the support of the National Bank of Georgia. The indices were developed by Intercontinental Exchange (ICE) and made available through both Bloomberg (Bloomberg IND) and ICE’s indices portal (indices.ice.com).The conference was opened by Ekaterine Mikabadze, First Vice-Governor of the National Bank of Georgia. In her welcoming speech, she spoke about the development of capital markets, the practical importance of market indices and their transformation into investment products.According to her, the publication of indices is an important step on the path of development of the Georgian financial market.“Georgia has made significant progress in recent years and today we have a well-developed government securities market, a strong market infrastructure, a DVP (Delivery versus Payment) settlement system and a modern framework for investment funds and asset managers. The funded pension system is becoming an increasingly important long-term investor in the local economy.“ICE Georgian Government Bond Indices” adds an important fundamental element to this structure. They represent a globally recognized benchmark - a target indicator and fully cover the sovereign curve of the lari with maturities up to 10 years. Using ICE indices, it is possible to manage portfolios with respect to yield and risk in treasury bonds, develop investment mandates and ultimately develop indexed investment products related to the Georgian government bond market,” said Ekaterine Mikabadze.Within the framework of the event, representatives of the Financial Markets Department and the Securities Market Supervision Department of the National Bank of Georgia presented reports on the strategic vision of Georgia’s development and the regulatory and tax environment for investment funds.The participants of the panel discussions discussed practical steps in creating index-based investment funds in Georgia, international experience in developing ETFs, as well as issues of strengthening the investment market ecosystem and developing relevant infrastructure.The conference was attended by representatives of Intercontinental Exchange (ICE), as well as Representatives of local and international financial institutions, investment fund management companies, the banking sector and asset management.The conference continued on the second day in the format of bilateral meetings between local financial market participants and ICE representatives.

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The central bank said international reserves are a key safeguard of the country’s macroeconomic stability, noting that its long-term policy remains focused on accumulating reserves and managing reserve assets efficiently.According to the National Bank, favorable foreign exchange market conditions have enabled it to continue replenishing reserves throughout 2026. Between January and May 2026, the central bank’s net foreign exchange purchases totaled $1.466 billion. Statistics on net purchases for June will be released on July 27.The National Bank also highlighted that it diversified its reserve portfolio in 2024 by making its first investments in monetary gold, describing the move as a strategic decision. Since then, rising gold prices have further increased the value of Georgia’s international reserves.In June 2026, the central bank purchased an additional $100 million worth of monetary gold. As of the end of June, gold accounted for 14.2% of Georgia’s total international reserves, equivalent to $1.014 billion.The National Bank of Georgia said it will publish updated data on the country’s total international reserves on August 7, 2026.

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