or the past two years, Georgia has faced persistent political instability, driven by various legislative and electoral actions of the ruling party, ultimately resulting in a profound political crisis that has undermined the domestic and international legitimacy of the ruling party.

This note provides an overview of recent developments regarding Georgia’s foreign exchange Gross International Reserves (GIR), offers insights into some aspects of reserve adequacy, and central bank’s safeguards principles in the context of heightened political uncertainties. It appears that the GIR are likely inadequate to withstand prolonged political uncertainties. Furthermore, the National Bank of Georgia's (NBG) governance and regulatory frameworks are not presently equipped to counter these challenges.

The political and social turmoil surrounding the 26 October parliamentary elections and their aftermath have significant implications for Georgia's business environment. The prolonged polarization, government-led violence against protesters, and the suspension of EU accession talks create uncertainty that can negatively influence the economic climate in multiple ways.

The underrepresentation of women in entrepreneurship in Georgia is a significant problem that disproportionately affects women’s ability to start and to sustain businesses. Despite legislative efforts and economic strategies intended to enhance the business environment, women face considerable challenges, such as limited access to finance, which hamper their ability to start and grow businesses.

In the past year or so Georgia has experienced significant declines in economic governance. In addition to the anti-democratic Law on Transparency of Foreign Influence (known as the Agents Law), several laws and legal amendments initiated by the ruling party and the Parliamentary majority have drawn significant attention from stakeholders, experts, and the general public.