The National Bank of Georgia (NBG) is the central bank of Georgia. Its status is defined by the Constitution of Georgia. The main objective of the National Bank is to ensure price stability.
Georgia's first central bank was established in 1919. In its current form the National Bank of Georgia has existed since 1991.
According to the Constitution of Georgia, the National Bank is independent in its activities. The members of Georgia’s legislative and executive bodies do not have the right to intervene in the NBG’s activities. The rights and obligations of the National Bank of Georgia as the central bank of the country, the principles of its activity and the guarantee of its independence are defined in the Organic Law of Georgia on the National Bank of Georgia.
The National Bank of Georgia implements monetary policy according to the main directions of the monetary and foreign exchange policy defined by the Parliament of Georgia. It holds, keeps and disposes the international foreign reserves of the country. Through its regulation and monetary instruments, the National Bank of Georgia is responsible for ensuring the fulfillment of the basic functions and objectives assigned to it by law.
The National Bank exercises supervision over the financial sector for the purposes of facilitating financial stability and transparency of the financial system, as well as for protecting the rights of the sector’s consumers and investors. The National Bank of
Georgia also supervises the process of compliance, of reporting entities
defined by the law of Georgia on "Facilitating the Suppression of Money
Laundering and Terrorism Financing", with the requirements of the same law and
legal acts issued by the Financial Monitoring Service and the National Bank of
Georgia on the basis of the mentioned law. Supervision is conducted in line
with the risk-based approach, both via means of off-site and on-site
inspections. In addition, the NBG is the banker and fiscal agent of the government.
The NBG is responsible for performing and disseminating financial and external sector statistics in accordance with international standards and methodologies, and also for the effective and proper functioning of payment systems. The Bank has the sole right to issue money units as legal tender in the territory of Georgia, as well as the right to mint commemorative coins for numismatic and circulation purposes.
The National Bank of Georgia may provide banking services to foreign governments, foreign central banks and foreign monetary authorities, as well as international organizations. The National Bank participates in the activities of international organizations that pursue economic stability in the monetary sector through international cooperation.