«We use the available tools and make every effort to prevent depreciation of som,» Tolkunbek Abdygulov, Chairman of the National Bank of Kyrgyzstan, said.
According to him, a floating exchange rate regime operates in Kyrgyzstan. Therefore, the exchange rate of the U.S. dollar or other foreign currency is determined by demand in the foreign exchange market. The economy is declining, and this indicator also affects the exchange rate of the national currency.
«But the mechanisms for setting the rate are very complicated, they are connected with the internal state of the economy, the situation on world markets is also relevant. There is also a psychological factor in the current situation. In order to reduce it in the foreign exchange market and prevent som from falling, we daily conducted interventions last week. Over the past two months, we have sold about $ 100 million to stabilize the situation in the foreign exchange market,» Tolkunbek Abdygulov stressed.
The National Bank sold $ 21.4 million on November 16. The next day, the bank again entered the foreign exchange market with an intervention of $ 500,000. On November 18, the National Bank of the Kyrgyz Republic again sold $ 1.3 million. On November 19, it sold $ 3 million to support the som, on November 20 — $ 2,50 million.
The central bank has sold $ 30,250 million in the foreign exchange market for five days.
In total, since the beginning of November, six interventions have been conducted for a total of $ 57,050 million.
Exchange rate of the U.S. dollar has been fluctuating for the second month in a row in Kyrgyzstan.