National Bank sells dollars on foreign exchange market 21 times since beginning of 2016

The National Bank has 21 times sold dollars on the foreign exchange market since the beginning of 2016, the press service of the National Bank of the Kyrgyz Republic reported to 24.kg news agency.

It is noted that in August the National Bank intervened three times. Two times of them, on August 11 and 29, it sold dollars. To curb the growth of currency it spent $11,180 million and $3.8 million.

Since the beginning of the year, the National Bank has sold $121.6 million on foreign exchange market. It has bought currency 24 times, totaling $175.07 million. As a result, the net purchase of dollars was formed in the amount of $53.47 million.

"The dynamics of the US dollar to KGS was multidirectional since the beginning of 2016. If at the beginning of the year its rate increased, in March there was an inverse dynamics. At present, the situation on the foreign exchange market is relatively stable. In general, since the beginning of 2016 to August 22 the dollar against KGS decreased by 9.9 percent - from 75,8969 to 68,4084 soms. At the end of 2015, recall, the dollar rose by 28.9 percent - from 58,8956 to 75,8993 soms," the National Bank reported.

The volume of international reserves of the National Bank of the Kyrgyz Republic as of August 19, 2016 amounted to $2. 66.86 billion.

To curb the sharp currency fluctuations, the bank applied various instruments of monetary policy. So, from May 31, 2016 the discount rate was set at the level of 6 percent, the rate on "overnight" credits - 7.5 percent and "overnight" deposits - 0.5 percent. Also, the National Bank carries out operations on withdrawal of excess liquidity. Sales volumes of NBKR notes and deposits "overnight" since beginning of 2016 till August 21 amounted to about 69.05 billion and 1. 69.59 billion soms.