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Kyrgyzstanis begin to keep more money in soms

Over the past five years, the level of dollarization of deposits in Kyrgyzstan has decreased by 15.3 percent.

According to the National Bank, at the beginning of 2015, deposits in dollars amounted to 46,305 billion soms (56.5 percent of the entire deposit base), and at the end of 2019 — 57,667.6 billion soms. Their total volume grew by 31 percent, but at the same time, dollar deposits make up only 38.2 percent of all deposits today.

In 2019, dollarization of deposits decreased by 5.7 percent — from 43.9 percent to 38.2 percent.

The volume of deposits in national currency, on the contrary, is actively growing. Five years ago, they amounted to only 35,610.4 billion soms (43.5 percent of the deposit base). At the beginning of 2020, the indicator increased 2.6 times — up to 93,285.9 billion soms. This is 61.8 percent of the total number of deposits.

2017 became a turning point. The National Bank began an active policy to reduce the level of dollarization of the economy. As a result, by the beginning of 2018, deposits in soms began to grow.

This is partly due to the fact that dollar deposits’ rates have decreased 2.4 times over the past five years, but as for deposits in soms, they remained almost at the same level.

Today, bank rates on deposits in soms are 4.3 times higher than on dollar deposits.