Georgian National Bank signs cooperation agreement with People’s Bank of China

The National Bank of Georgia has signed a memorandum of understanding with China's central bank ‘aimed at expanding and strengthening bilateral cooperation’.

On Saturday, the National Bank of Georgia stated that the agreement was signed by the bank’s president, Natia Turnava, and Pan Gongsheng, President of the People’s Bank of China, as part of a visit by a Georgian delegation to Beijing.

The agreement was first announced by the People’s Bank of China on 26 March. According to their statment Gongsheng and Turnava ‘exchanged views on China–Georgia macroeconomic outlook, bilateral financial cooperation as well as other topics’.

According to the Georgian side, the agreement envisages collaboration ‘in key areas, including monetary policy, financial technology, payment systems, and securities market development’.

‘The agreement envisions the exchange of information and expertise in these fields’, the Georgian National Bank’s statement said.

‘Our shared goal is to enhance the efficiency and connectivity of our banking sectors’, Turnava stated.

‘We aim to make the Georgian financial market more attractive to Chinese banks and financial institutions. It is encouraging that our Chinese counterparts have demonstrated strong interest and willingness for closer cooperation’.

The National Bank of Georgia also said that as part of their cooperation, the banks will undertake joint projects and ‘work to improve banking services between the two countries’.

‘A key focus within their mandate will be the development and modernisation of payment infrastructure, with special attention given to strengthening interconnections between payment systems. This initiative aims to facilitate fast, efficient, and secure international transactions’.

Georgian–Chinese relations have been steadily warming in recent years, with Tbilisi courting Chinese investment in several Georgian projects.

Georgia introduced a visa-free regime for Chinese nationals in September 2023.

In August 2023, Georgian and Chinese leaders agreed to ‘elevate bilateral relations to a strategic partnership’, during a week-long visit by then-Prime Minister Irakli Gharibashvili to China.

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Following the signing of the strategic partnership document, critics warned it could endanger the country’s relations with the West.

In November 2023, months after Georgia and China signed their partnership agreement, then-President Salome Zourabichvili came under fire from the ruling Georgian Dream party after appearing to suggest that Chinese Premier Xi Jinping should face prosecution.

Zourabichvili’s statements were made in an interview with French TV LCI, in which the interviewer asked her if she hoped Xi and Russian President Vladimir Putin would face prosecution — Putin for crimes against humanity and Xi for the genocide of the Uyghurs.

Zourabichvili responded that this would be a ‘historic outcome that would put certain things in their place’, but added that she did not believe it was realistic.

Senior members of ruling Georgian Dream were quick to condemn the president and defend relations with China.

A few days after the interview, Zourabichvili’s office held a meeting with the Chinese Embassy, in which they clarified that her remarks only concerned Putin and that the ‘entire interview was focused on Georgia–EU relations, Georgia, and Russia’.

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