Situation within domestic foreign exchange market is stable - Head of Kyrgyz National Bank

Bishkek, May 28, 2019. /Kabar/. The situation within the domestic foreign exchange market is stable, Tolkunbek Abdygulov, the Chairman of the National Bank of the Kyrgyz Republic told during the press conference at Kabar News Agency.
He noted that the direction of monetary policy aimed at supporting measures on stimulating the real sector of the economy contributed to further expansion of lending to the economy and reduction of interest rates. Short-term rates of the money market continue to be within the interest rate corridor set by the National Bank and tend to approach the key rate.
"The activity in the interbank credit market remains at a rather high level. The banking system is witnessing an increase in excess liquidity, which is responsible for the increase in the National Bank's operations aimed at its withdrawal. The situation in the domestic exchange market is stable," the chairman of the National Bank said.
"In case of risks in the internal and external environment, the National Bank may consider the possibility of adjusting the current direction of monetary policy. The National Bank regularly evaluates external and internal factors influencing inflation and will undertake appropriate monetary policy measures depending on the economic situation," he added.
The chairman added that a supranational bank of the Eurasian Economic Union (EAEU) countries will be established in 2025.
"Last week I was in Moscow and met with the heads of central banks of the EAEU countries. We discussed the issue of finalizing the concept of financial markets of the Union countries. Currently, various options are being discussed on the requirements for the authorized capital and mutual recognition of licenses. In any case, after 2025, some of our banks will find difficulties in their work, because other financial institutions will be able to enter Kyrgyz markets," he said.
Abdygulov said that the adoption of a common concept can be a difficult step for Kyrgyzstan, in this regard it may require a transition period or facilitation.