IMF recommends National Bank of Kyrgyzstan limit interventions

AKIPRESS.COM - IMF Executive Directors considered the monetary policy stance as appropriate but saw merit in greater exchange rate flexibility in Kyrgyzstan upon conclusion of 2019 Article IV Consultation with the Kyrgyz Republic.
They welcomed steps taken to move toward inflation targeting, including reducing excess liquidity, dollarization, and the width of the interest rate corridor.
To help this transition and allow the economy to adjust to shocks through the exchange rate channel, IMF Executive Directors recommended that the National Bank of the Kyrgyz Republic (NBKR) maintain two-way exchange rate flexibility and limit interventions solely to smoothing excessive fluctuations.