Georgia signs free trade agreement with China
On 13 May 2017, Georgia and China signed the free trade agreement to expand bilateral trade, Beijing’s first-ever free trade agreement in the Eurasian region; The two countries launched the free trade agreement negotiations in March 2015. Based on the agreement, the 94% of Georgia’s exports to China will be exempted from import duties. China was top 3 export market for Georgian products in 2016, with exports increasing 34.8% y/y to US$ 170mn. Currently, Georgia has free trade agreements with EU, Turkey, CIS countries, the European Free Trade Association and China.
International reserves up 11.8% y/y in April 2017
Gross international reserves were up 11.8% y/y to US$ 2.7bn in April 2017, while reserves were down 3.1% m/m (-US$ 87.0mn), according to NBG. The central bank intervened in the FX market and purchased US$ 19.8mn in April 2017. The reduction in reserves on a monthly basis was related to government FX operations and/or asset revaluation.
