National Bank of Georgia ready to invest part of its reserves on China's interbank bond market

TBILISI. Feb 12 (Interfax) - The National Bank of Georgia (NBG) plans to invest part of its international reserve assets in debt instruments on China's financial market, NBG Governor Natia Turnava said.

"The National Bank of Georgia has joined a small list of central banks authorized to operate on the China Interbank Bond Market (CIBM). In February this year, accounts were opened for the National Bank of Georgia both at the People's Bank of China and in the depository infrastructure of the interbank bond market," the NBG said in a press release.

"The China Interbank Bond Market is one of the main channels for direct access of foreign institutional investors, including central banks, to the Chinese bond market. Access to this market will improve the investment opportunities of the National Bank of Georgia and will contribute to the diversification of the international reserves portfolio and increase the efficiency of the risk management process," Turnava was quoted as saying.

"Further steps for the development of the new market will be implemented in stages and will be based on assessment of the market's operating environment, settlement mechanisms, legal framework and risks," the NBG said.

The NBG concluded an agreement with the People's Bank of China on access to the interbank bond market during the official visit of a Georgian central bank delegation to China in December last year.

Currently, the majority of NBG's reserves are placed in assets denominated in U.S. dollars, with around 15% of reserves accounted for by gold. At the beginning of February, the NBG's international reserves amounted to $6.3 billion, up 42% year-on-year.