Georgia's National Bank purchases 7 tonnes of monetary gold, includes it in its reserves for the first time

TBILISI. April 8 (Interfax) - The National Bank of Georgia purchased 7 tonnes of monetary gold on the London gold bullion market and included it in its international reserve assets, the National Bank said in a statement.

"Currently, gold is being stored in London. The volume of purchased gold today is equal to approximately 11% of the international reserves of the National Bank. The specified gold will be placed in the warehouse of the National Bank in Georgia (...) Based on a decision made by the Council of the National Bank, the monetary gold was added to international currency reserves," the regulator said.

"We made a decision and for the first time in the history of independent Georgia added monetary gold to our foreign exchange reserves. Our approach is to always try to increase our international reserves, because this is the so-called safety cushion of our country. Now we are not only increasing the reserves, but also diversifying them, and for the first time in our country, the Central Bank will include gold in international reserves as one of its reliable and always valuable assets," Acting President of the National Bank Natia Turnava said in a press release.

According to the National Bank of Georgia, its international reserve assets at the beginning of 2024 totaled $5 billion, compared to $4.9 billion at the beginning of 2023 and $4.27 billion at the beginning of 2022.

The press release said that globally, 1/8 of all foreign exchange reserves are held in gold, and central banks own 20% of all gold. Central banks bought a total of 1,037 tonnes of gold in 2023, representing 28% of total gold demand.