Gold Price Surge and Diversification Strategy: How Georgia’s Foreign Currency Reserves Grew in March 2025

March 2025 turned out to be an exceptionally positive month for Georgia’s foreign currency reserves. The National Bank of Georgia published statistics showing that foreign reserves increased by $4.245 million, reaching $3.133 billion, up from $3.129 billion at the end of February. However, this is only part of the broader picture that reveals both the effectiveness of the National Bank’s policies and the impact of global financial markets on Georgia.

Significant growth was also recorded in international foreign reserves — they rose by $76.8 million in March, totaling $4.3 billion. Such an increase might suggest that it is solely linked to the National Bank’s monetary policy, but in reality, the situation is more layered. The main driver behind this growth was the sharp rise in gold prices, which increased the value of the National Bank’s gold reserves by $64.4 million in March alone. As a result, by March 2025, gold accounted for 16.6% — or $714.9 million — of total international reserves.

It is also notable that, if we track the change in gold’s value from the time of its acquisition to today, the monetary gold reserves have increased by approximately $195 million. This fact highlights not only the National Bank’s agility and ability to adapt to global trends but also the strategic approach it follows — aiming to diversify reserves. In other words, the National Bank is successfully working to spread risks and avoid dependence on a single asset, a crucial guarantee for long-term financial stability.

The composition of the reserves offers an interesting picture as well. According to the National Bank’s data, as of March, $2.380 billion was invested in securities, indicating a focus on stable and liquid instruments. Meanwhile, $753.6 million was held in cash, likely as a buffer against various types of external shocks.

Although the National Bank publishes updated figures on a monthly basis, the existing data already clearly illustrates several major trends: the growth of Georgia’s foreign reserves is strategic and deliberate; the global gold price remains one of the key factors in boosting the value of national assets; and reserve management reflects a broader, well-thought-out approach to ensuring the country’s financial resilience.