It is proposed to impose temporary restrictions on the export of U.S. dollars in cash outside the country by legal entities and individuals (residents and non-residents). The corresponding draft resolution of the Cabinet of Ministers was submitted for public discussion by the Ministry of Economy and Commerce of Kyrgyzstan.
The ministry proposes to ban the export of currency in the following sizes:
- Non-residents of Kyrgyzstan and foreigners — more than $5,000;
- Residents and citizens of the Kyrgyz Republic — more than $10,000.
The ministry notes that this is done to minimize the negative consequences for the domestic market of Kyrgyzstan associated with the exchange rate fluctuations of the national currency. In addition, according to the Ministry of Economy, such a measure is needed to smooth out a sharp increase in prices for certain types of socially significant goods, eliminate negative consequences for import-dependent sectors of the economy, and saturate the domestic market with foreign currency.
The ministry also proposes to introduce a payment (fee) in the amount of 10 percent of the amount exceeding the established limit. In its opinion, this will increase revenues to the republican budget.
By the decision of the National Bank, commercial banks, exchange offices and other organizations that have licenses for currency exchange are prohibited from exporting cash dollars outside of Kyrgyzstan since March 12.
