Kyrgyzstan’s economic week May 27 – June 1, 2019

The market is stable. The situation in the domestic currency market of Kyrgyzstan is stable, Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov told.
He noted that the direction of monetary policy contributed to the further expansion of lending of the economy and lower interest rates. Short-term money market rates continue to be within the interest rate band established by the National Bank, and tend to converge with the key rate.
"At the interbank credit market, activity remains at a fairly high level. In the banking system, there is an increase in excess liquidity, which causes an increase in the operations of the National Bank for its withdrawal. The situation in the domestic foreign exchange market is stable," the chairman of the National Bank said.
New financial concept. From 2025, some banks in Kyrgyzstan will have to work hard, because financial institutions of the Eurasian Economic Union (EAEU) countries will enter the Kyrgyz market.
Head of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov said that a supranational bank of the EAEU countries will be created in 2025.
"Last week I was in Moscow and met with the heads of the central banks of the EAEU countries. We discussed the issue of finalizing the concept of financial markets of the countries of the Union. Currently, various options are being discussed on the requirements to share capital and mutual recognition of licenses. In any case, after 2025, some of our banks will have to work hard, because other financial institutions will be able to enter our markets," he said.
Abdygulov said that due to the fact that for Kyrgyzstan the adoption of a single concept can be a difficult stage, it is likely that a transitional period or relief will be needed.
Digital Exchange. The opening ceremony of Central Asia International Digital Asset Exchange CJSC - a project that is being implemented in Kyrgyzstan with the support of the Central Asia International Development Company LLC was held in Bishkek.
Central Asia International Digital Asset Exchange is a unique platform for trading stocks, bonds, other financial instruments, as well as digital assets.
The activities of the new exchange will be aimed at providing customers with a full cycle of trading and post-trading services; to promote economic growth and restructuring of the national economy by expanding opportunities to attract capital for companies and foreign investors; to assist in the development of the national financial market, its infrastructure, improvement of technologies and increasing the attractiveness of its trading platforms and services for domestic and foreign investors and issuers.
Electricity market. The President of the Kyrgyz Republic Sooronbay Jeenbekov in the capital of Kazakhstan at an expanded meeting of the Supreme Eurasian Council proposed to open a body to regulate the common electricity market.
He drew attention to the significant gap between the economies of the EAEU member states.
"The tendency to maintain the gap between the countries of the Union may adversely affect the development of Eurasian integration as a whole. We need to find a consensus on strengthening economies and ensuring their harmonious development and convergence. I propose to instruct the Commission to conduct an analysis of various support and development mechanisms for countries with small economies. And to prepare concrete proposals for the introduction of such a mechanism in our Union," said Jeenbekov in Nur-Sultan.
Digital Finance. There are two key areas in the process of digitalization of Kyrgyzstan: issues of digitization of the financial sector and issues of sustainable financing, and green economy. This was stated at the Bishkek International Financial Forum in Bishkek. These areas are considered priorities for Kyrgyzstan, said Daniyar Imanaliev, the head of the department of strategic development, economics and finance of the President’s Office.
"These topics are selected as priority. As is known, in the framework of the strategy until 2040, the key focus is also the innovative development of the country. First of all, this is the development of digital technologies and services, the information society and, of course, this is transparency and adaptability of the civil service apparatus," he said.
The importance of financial literacy. The introduction of modern technologies in the banking sector is not enough, it is necessary to improve the financial literacy of the population.
Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov at the Bishkek International Financial Forum stated that the banking sector in Kyrgyzstan has historically been one of the most dynamically developing sectors of the economy, which is absolutely transparent.
"In the banking sector we employ more than 15 thousand people. This is a huge part of the population. The banking sector is one of the most advanced in information technology. Together we must work not only on infrastructure, but also on improving financial literacy. It’s not enough to introduce electronic wallets, it’s necessary to teach people how to use them, and to show what advantages there are," noted Abdygulov.
Savings for old age. In Kyrgyzstan, only 3% of the population has savings for old age.
Pavel Shust, the director of the Association of Participants of the Electronic Money and Money Transfer Market of Russia, IFC Project Consultant Electronic and Financial Services, said that the reason for this is that customers think that banking services are expensive.
"Second, 21% of respondents told us that its too far to go to banks. That is why we are betting on new technologies in order to significantly reduce costs," he said at the Bishkek International Financial Forum.
Pavel Shust drew attention to the fact that about half of Kyrgyzstanis do not have financial accounts.
Salary growth. In Kyrgyzstan, in January-March 2019, the average monthly nominal wage per employee (excluding small enterprises) was USD 225.2 (15 thousand 716 soms).
According to the National Statistics Committee of the Kyrgyz Republic, this figure compared with the corresponding period of 2018 increased by 4.1%.
An increase in the rate of growth of the average monthly wage was observed at enterprises and organizations of all regions of Kyrgyzstan.
Kabar News Agency