Global Finance magazine has named the heads of the Central Banks of the Czech Republic, the European Union, India, Israel, Malaysia, Paraguay, Peru, the Philippines, and Taiwan as the World’s Best Central Bankers over the past year, in recognition of their achievement of a prestigious “A” grade on Global Finance’s Central Banker Report Cards. Georgia did not appear in the ranking.
In addition, the Central Bankers of Colombia, Saudi Arabia and the United States earned “A” grades.
Global Finance publisher and editorial director Joseph Giarraputo notes, “Global economies are starting to recover. This comes despite a number of challenges, including a strengthening US dollar and the end of the Federal Reserve’s easy money policy. Central bankers remain crucial in overcoming these hurdles. Sound monetary policies can dampen the effects of currency swings and rising interest rates—and thus spur economic growth. As our scores show, some central banks have fared better than others in devising such policies. Our grades also reflect the willingness of central bankers to stand up to political interference as well as their ability to influence government policies on spending and foreign investment.”
The Central Banker Report Cards, published annually by Global Finance since 1994, grade the central bank governors of nearly 75 key countries (and the European Union) on an “A” to “F” scale for success in areas such as inflation control, economic growth goals, currency stability and interest rate management. (“A” represents an excellent performance down through “F” for outright failure.) Subjective criteria also apply. This year, 5 central banks are being graded for the first time (Botswana, Iceland, Namibia, Paraguay and Uganda).
Recall that a few months ago the world’s leading financial magazine The Banker, owned by Financial Times Group, named Giorgi Kadagidze, Governor of National Bank of Georgia, as the Central Banker of the year 2014 for Europe.
Well capitalized and stable banking sector that showed resistance to major shocks, is Georgia’s key feature so that the head of the country’s central bank Giorgi Kadagidze shared his experiences with the representatives of the central banks of Kazakhstan, Tajikistan and other countries through programs funded by the World Bank,” The Banker writes.
The publication notes that there is still a very high level of dollarization in Georgia, which is a serious problem and will remain so in the coming years.
“In 2014, George Kadagidze stimulated the process of de-dollarization and by using different instruments, the National Bank has improved the availability of loans in the national currency. The NBG supported the development of the local capital market. In 2014, the European Bank for Reconstruction and Development (EBRD) for the first time issued GEL-denominated bonds, and in the words of George Kadagidze, other international financial institutions plan to do the same. In his opinion, the release of the GEL- denominated bonds by international financial institutions will contribute to the emergence of long-term loans in local currency in the market and the process of de-dollarization,” writes the magazine.
CBW is waiting for the answer from the publication why Georgia didn’t hit the Global Finance’s ranking.