For the first time in four years, the National Bank of Kyrgyzstan bought U.S. dollars in the foreign exchange market. Press service of the bank says.
It purchased $5.4 million to smooth out sharp fluctuations of the exchange rate.
The National Bank noted that under the current floating exchange rate regime, the dynamics of the foreign exchange rate is determined on the basis of the balance of supply and demand in the domestic foreign exchange market. In addition, the National Bank of the Kyrgyz Republic is not a strict regulator of the domestic foreign exchange market and does not determine the exchange rate trends, but only aims to mitigate sharp fluctuations of the exchange rate.
«As for the depreciation of the U.S. dollar against the Kyrgyz som, the exchange rate is formed from the current balance of supply and demand for foreign currency of the population and various business communities. The balance of supply and demand is influenced by both external and internal factors. Consequently, depreciation of the U.S. dollar was influenced by the predominance of the supply of foreign currency over its demand, as well as the current strengthening of the national currency of the countries — the main trading partners of Kyrgyzstan against the U.S. dollar. The National Bank constantly monitors the situation developing in the domestic foreign exchange market and external financial markets, and, if necessary, takes measures in accordance with the monetary policy,» the National Bank commented.
