The National Bank of Kyrgyzstan commented on the situation in Kyrgyzstan against the background of information concerning possible sanctions against the Russian Federation, disconnection of a number of Russian banks from SWIFT system.
According to the National Bank of Kyrgyz Republic, Kyrgyzstan’s banking system remains stable and sustainable. Commercial banks continue to operate in a normal mode and provide customers with a full range of banking services, including payments through both national and international payment systems. Banks in Kyrgyzstan have entered into correspondent relationship agreements with banks in non-CIS countries, the EAEU and the CIS.
This allows uninterrupted payments for goods and services outside Kyrgyzstan.
In addition, most commercial banks in the country are connected to the SWIFT system through the National Bank or directly. Therefore, the risk of disconnection of some banks in Russia from the SWIFT system will not lead to suspension of payments of clients of banks in Kyrgyzstan. At the same time, in accordance with the requirements of the National Bank, commercial banks have alternative communication channels to transmit financial messages.
«The national payment systems of Kyrgyzstan and money transfer systems function as usual. The degree of influence of the country risks on the functioning of the national payment and money transfer systems is minimal. In addition, we note that the National Bank will continue to adhere to the floating exchange rate regime adopted in 1993, under which the dynamics of the exchange rate is determined based on the balance of supply and demand of foreign currency in the domestic foreign exchange market. If necessary, the National Bank will conduct appropriate operations, including interventions in order to smooth sharp fluctuations in accordance with monetary policy,» the National Bank stressed.
The volume of international reserves of the National Bank is sufficient and will cover about six months of the country’s future imports of goods and services.
As of February 26, 2022, the international reserves of the National Bank amounted to $2,768 billion.
«The National Bank continuously monitors and controls the situation in foreign financial markets, the economies of trade partner countries, and if necessary, will take measures to further ensure the stability of the banking and payment systems of the country,» the National Bank concluded.
