PM holds meeting on foreign exchange market situation

Bishkek, Mar.11, 2020. /Kabar/. Prime Minister of the Kyrgyz Republic Mukhammedkalyi Abylgaziev held Monday meeting on the situation on the world markets and its impact on the Kyrgyz economy, the Government's press service said.

The situation in the currency market and banking sector, as well as measures taken to ensure the stability of the national currency due to declining oil prices and negative fluctuations in the currency markets of the countries that are the main trade and economic partners of Kyrgyzstan were discussed at the meeting.

Special attention was paid to the main risks of external shocks impact on the Kyrgyz economy and measures to stabilize the trade balance level.

The importance of effective use of available instruments of the National Bank of the Kyrgyz Republic to ensure stable and balanced operation of the foreign exchange market was emphasized.

According to Tolkunbek Abdygulov, Chairman of the National Bank, today there is a "natural" reaction of commercial banks and exchange offices to external fluctuations. The financial regulator has sufficient reserves to smooth out sharp fluctuations in the national currency rate.

Mukhammedkalyi Abylgaziev stressed the need for a prompt response and effective measures to smooth out sharp fluctuations in the exchange rate of the national currency, as well as to ensure the stable operation of financial institutions in the country.

The prime minister has instructed to assess the impact of exchange rate differences in international markets to take effective measures to ensure macroeconomic stability and maintain the level of exports of domestic products abroad.

The Economy Ministry and the State Agency for Antimonopoly Regulation under the Government have been instructed to constantly monitor the prices for basic necessities and food products to prevent unreasonable and speculative price rises.

Yesterday, Mar.10 the Kyrgyz som (KGS) fell against the dollar and the euro. Thus, the dollar is sold at KGS 73, and the euro at KGS 83.

On the official websites of the RSK Bank and KICB, the purchase of the dollar is KGS 72.9, the sale is KGS 73. DemirBank purchases dollar at KGS 72.85 and sells at KGS 72.95. The euro exchange rate is KGS 78.8 - 80.

The national currency rate fell in almost all commercial banks in the country. At the same time, the rate is maintained on the official website of the National Bank. Dollar - KGS 69.85, Euro - KGS 79.37 sale, KGS 79.6 purchase.

Recall that the collapse of the national currency occurred in Russia and Kazakhstan due to oil price drop by 30%.