Where are foreign exchange reserves stored — the National Bank has published an annual report

The National Bank of Georgia has released its 2025 financial report, providing detailed insight into how the country's foreign exchange reserves are managed and invested. The report outlines the strategic allocation of reserves across multiple asset classes to ensure safety, liquidity, and returns while mitigating financial risks.

According to the report, foreign exchange reserves are distributed among three primary investment categories. A significant portion is held in internationally recognized commercial banks with high credit ratings and in central banks of OECD member countries, ensuring counterparty reliability. The largest share of reserves, however, is invested in government securities issued by developed nations, providing stable and secure returns. Additionally, reserves are allocated to securities issued by specialized financial institutions, diversifying the portfolio further.

The National Bank implements rigorous criteria when selecting investment counterparties, with all decisions based on credit ratings. For debt instruments, the minimum acceptable rating is set at A-, while for banking account counterparties, the threshold is established at BBB-. These thresholds ensure that all reserve holdings meet stringent safety standards.

Geographically, the reserves demonstrate substantial diversification across major global financial centers and regions. Holdings are distributed across the United States, the European Union, South Korea, Canada, and various international financial institutions. This geographical spread reduces concentration risk and ensures access to stable, liquid markets across different economic zones. The strategic approach to reserve management reflects the National Bank's commitment to preserving monetary stability and protecting the country's financial resources.