Kyrgyzstan Has Sold $227 Mill in 4 FOREX Interventions in 2023

Kyrgyzstan foreign exchange

Since the start of 2023, the National Bank of Kyrgyzstan has made four Foreign exchange (FOREX) interventions worth $227 million, National Bank’s spokesperson Aida Karabaeva said in an interview with Birinchi Radio.

Karabaeva said that this is a seasonal factor since there was a big demand for foreign currency, noting that foreign exchange interventions are one of the measures that the National Bank undertakes when necessary to smooth out fluctuations and rather sharp exchange rates, adding that this action is rather popular.

She said, however, that the situation in the foreign exchange market is relatively stable at the moment and that the National Bank is monitoring the situation on an ongoing basis.

Per the website of the National Bank of Kyrgyzstan, foreign exchange (FOREX) interventions are operations of buying or selling of foreign currency aimed to smooth the excessive volatility of the exchange rate.

In Kyrgyzstan, foreign exchange (FOREX) interventions are being conducted under a resolution of the Monetary Regulation Committee of the National Bank.  

Previously in February, for the second time in a month, the National Bank of Kyrgyzstan entered the foreign exchange market with intervention, the bank reported on its website.

With settlements different from the date of the transaction, the release noted that, in total, $40,220 million were sold.

The National Bank of the Kyrgyz Republic has sold $87,320 million since the beginning of the month to stabilize the situation in the foreign exchange market.

This, however, did not significantly change the situation on the foreign exchange (FOREX) market, allowing the appreciation of the U.S. dollar in Kyrgyzstan to continue.

The amount of US currency sent to Kyrgyzstan via international money transfer systems reached $707.9 million in 2022, which is or 22.1% (or $201.3 million) less than in 2021.

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