{
  "title": "Georgia: Selected Issues",
  "publication": "IMF Staff Country Reports, July 28, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012",
  "canonical": "https://www.imf.org/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012",
  "overlayPath": "/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/index.md",
  "summary": "This Selected Issues paper discusses an application of the integrated policy framework (IPF) in Georgia. Georgia has experienced significant swings in both international and domestic demand for the lari in recent years. The IMF’s IPF offers guidance on how Georgia did and should respond to these.",
  "sections": [
    {
      "heading": "Application of the Integrated Policy Framework (IPF)",
      "content": "- The paper discusses an application of the integrated policy framework (IPF) in Georgia.\n- Georgia experienced significant swings in both international and domestic demand for the lari in recent years.\n- The IMF’s IPF offers guidance on how Georgia did and should respond to these swings."
    },
    {
      "heading": "Monetary and Macro‑prudential Policy Assessment",
      "content": "- Prudent monetary and macro-prudential policy by the National Banking Group (NBG) has limited the need for further policy responses to these shocks.\n- Shallow foreign exchange (FX) markets in Georgia indicate that movements in the exchange rate can sometimes be inefficient—creating the potential for beneficial government FX intervention (FXI).\n- FX intervention (FXI) comes with risks and should be used cautiously."
    },
    {
      "heading": "Review of NBG FX Intervention since 2020",
      "content": "- The paper reviews the NBG’s major FXI operations since 2020.\n- Within the modeling framework used in the paper, interventions benefited the economy in the short run.\n- Given the low level of reserves and the institutional conditions of the NBG, the risks and long run costs of FXI likely outweighed the benefits."
    },
    {
      "heading": "Key Findings and Implications",
      "content": "- FX market shallow‑ness can lead to inefficient exchange rate movements.\n- Short‑run benefits from FXI were identifiable within the model employed.\n- Low reserves and institutional constraints materially increase the long‑run cost and risk of FXI, suggesting caution in relying on FXI as a primary policy tool.\n\n---\n\n Content in this bundle\n\n- Georgia: Selected Issues; IMF Country Report No. 25/217; July 7, 2025\n  - Georgia: Selected Issues; IMF Country Report No. 25/217; July 7, 2025 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Georgia: Selected Issues; IMF Country Report No. 25/217; July 7, 2025 (PDF){rel=\"external\" type=\"application/pdf\"}"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/index.md)",
    "[Structured JSON version](/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/index.json)",
    "[Bundle manifest](/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/bundle-manifest.json)",
    "Published: July 28, 2025",
    "Series: IMF Staff Country Reports",
    "DOI: https://doi.org/10.5089/9798229021029.002",
    "The paper discusses an application of the integrated policy framework (IPF) in Georgia.",
    "Georgia experienced significant swings in both international and domestic demand for the lari in recent years.",
    "The IMF’s IPF offers guidance on how Georgia did and should respond to these swings.",
    "Prudent monetary and macro-prudential policy by the National Banking Group (NBG) has limited the need for further policy responses to these shocks.",
    "Shallow foreign exchange (FX) markets in Georgia indicate that movements in the exchange rate can sometimes be inefficient—creating the potential for beneficial government FX intervention (FXI).",
    "FX intervention (FXI) comes with risks and should be used cautiously.",
    "The paper reviews the NBG’s major FXI operations since 2020.",
    "Within the modeling framework used in the paper, interventions benefited the economy in the short run.",
    "Given the low level of reserves and the institutional conditions of the NBG, the risks and long run costs of FXI likely outweighed the benefits.",
    "FX market shallow‑ness can lead to inefficient exchange rate movements.",
    "Short‑run benefits from FXI were identifiable within the model employed.",
    "Low reserves and institutional constraints materially increase the long‑run cost and risk of FXI, suggesting caution in relying on FXI as a primary policy tool.",
    "**Georgia: Selected Issues; IMF Country Report No. 25/217; July 7, 2025**"
  ],
  "related": [
    {
      "title": "Georgia: Selected Issues; IMF Country Report No. 25/217; July 7, 2025",
      "role": "document",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/cr/2025/english/1geoea2025002-source-pdf.pdf",
      "summary": {
        "path": "/-/media/files/publications/cr/2025/english/1geoea2025002-source-pdf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/cr/2025/english/1geoea2025002-source-pdf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/index.md",
    "json": "/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/index.json",
    "bundleManifest": "/en/publications/cr/issues/2025/07/25/georgia-selected-issues-569012/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-11T11:05:59.951Z"
}