The National Bank of Georgia purchased $100 million worth of physical gold, the central bank announced Wednesday. The acquisition brings the share of monetary gold in the NBG's international reserves to 15.5%, with total reserves reaching a historical high of $7.0 billion—114.8% of the International Monetary Fund's Assessing Reserve Adequacy metric. The purchase is part of the bank's long-term international reserve management strategy aimed at diversifying official reserves to hedge against geopolitical and inflationary risks. Central bank gold demand has provided key support for gold throughout its rally, with new players continuing to enter the market even as some nations contend with growing inflationary pressures and a global energy crisis.
NBG Gold Holdings Reach 15.5% of International Reserves
"Following this acquisition, the share of monetary gold in the NBG's international reserves will reach 15.5%. The upward trend of the international reserves is particularly noteworthy; as a result, total reserves have reached a historical high of USD 7.0 billion, with their volume amounting to 114.8% of the International Monetary Fund's Assessing Reserve Adequacy (ARA) metric," the National Bank of Georgia stated.
Georgia Resumes Gold Purchases After Previous Acquisitions in March and April 2024
According to data from the World Gold Council, this marks the first time Georgia has increased its gold reserves since March and April 2024, when the central bank purchased 4.7 tonnes and 2.5 tonnes, respectively. The NBG confirmed these gold purchases are part of its long-term international reserve management strategy, with diversification intended to hedge against geopolitical and inflationary risks.
Central Bank Cites Geopolitical Tensions and Inflation Hedge as Purchase Drivers
The National Bank of Georgia stated it expects official-sector demand to continue supporting the gold market. "Importantly, central bank demand exhibits low price sensitivity, which primarily supports the stability of the gold price floor. The ongoing conflict in Ukraine, escalating tensions in the Middle East, U.S.-China trade frictions, and the U.S.-Iran conflict that commenced in February 2026 have collectively reinforced a structural risk premium in gold pricing, enhancing its enduring value as a safe-haven asset," the central bank said.
FAQ
What did the National Bank of Georgia purchase on Wednesday?
The National Bank of Georgia announced it purchased $100 million worth of physical gold, bringing the share of monetary gold in its international reserves to 15.5% and total reserves to a historical high of $7.0 billion.
When did Georgia last increase its gold reserves before this purchase?
According to World Gold Council data, Georgia last increased its gold reserves in March and April 2024, purchasing 4.7 tonnes and 2.5 tonnes respectively during those months.
Why is the National Bank of Georgia buying gold?
The NBG stated the purchases are part of its long-term international reserve management strategy, aimed at diversifying official reserves to hedge against geopolitical and inflationary risks, with the bank expecting central bank demand to continue supporting gold market stability.
