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High dollarization of economy preserves due to low trust in som

«The high level of dollarization of the economy suggests that people still do not have enough trust in som,» an independent consultant Werner Hermann said at a conference on the 25th anniversary of the Kyrgyz som.

«A high level of dollarization preserves in all countries of Central Asia. This suggests that not everyone fully trusts in som. As for monetary policy, until 2000, there was a high inflation rate, and after that, it varied within a single digit. Regarding the exchange rate, it is about the external stability of the currency. The issue can be divided into three periods of development. From the introduction of som to the 2000s, there was a great depreciation of the currency; from 2000 to 2010, the exchange rate was stable. It used to be that som strengthened with respect to dollar. Since 2010, there was a depreciation again,» Werner Hermann said.

The expert noted the communication work of the National Bank.

«In this regard, the National Bank of Kyrgyzstan can be called a role model. I’ve seen a lot of central banks for 30 years, but your National Bank stands out as one of the most successful,» Werner Hermann summed up.

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