Foreign Exchange 

(June, 2007) 

The increase in non-cash US Dollars (USD) offer was registered in the foreign exchange in June. This was caused by the reduction of commercial banks expenses for customer contract payments for import of goods and services, and also by the inflow of deposits and funds in money transfers, plastic cards and checks. In these conditions the National Bank has increased USD purchasing activity in the foreign exchange, intending to equalize the market situation. As a result, the situation in the foreign market remained stable within the reporting month; fluctuations of the USD exchange rate were insignificant.  

As a whole, a weighed average USD exchange rate in the inter-bank exchange did not change in June, and by the end of the month was 37.95 KGS/USD. The USD official rate was also 37.95 soms/US Dollar as of the end of June, decreased by 0.16 per cent within the month.  

The total volume of foreign exchange transactions in June increased by 19.8 per cent, as compared to the previous month, and made USD 55.5 Million. The growth due to the National Bank’s transactions was 46.2 per cent, making USD 34.8 Million, while the volume of inter-bank transactions reduced by 8.2 per cent.  

In June, the USD exchange rate in currency exchange offices was changing within a narrow range, similar to its dynamics in foreign exchange. As a whole, during the month the USD exchange rate in currency exchange offices slightly grew (by 0.05 per cent) up to 37.9702 KGS/USD. Within the month, on average, it was by KGS 0.01 higher than the weighed average exchange rate in the inter-bank foreign exchange. A daily average fluctuation of the USD selling rate in currency exchange offices decreased from 0.03 to 0.02 per cent, and an average margin on USD buying/selling transactions reduced from 0.30 to 0.28 per cent.  

The Euro (EUR) exchange rate dynamics in currency exchange offices, as usual, formed under the influence of its variations in the external markets. After some strengthening during the first week of the month, it was declining until the mid-June, then, in the second half of the month, the exchange rate was mainly growing. As a whole, within June the EUR selling rate in currency exchange offices increased by 0.25 per cent and made 51.3026 KGS/EUR. A daily average fluctuation of Euro selling rate increased within the month from 0.6 to 0.10 per cent, and an average margin on purchasing/selling transactions grew from 0.36 to 0.43 per cent.  

The Russian Ruble (RUR) selling rate in currency exchange offices varied in June within the range of 1.462-1.471 KGS/RUR. As a whole, during the month it reduced by 0.31 per cent to 1.467 KGS/RUR. A daily average fluctuation of RUR selling rate has not changed as compared to the previous month, and made up 0.09; an average margin decreased slightly from 0.66 to 0.65 per cent. 

The selling rate of Kazakh Tenge (KZT) in currency exchange offices varied during the reporting month within the range from 0.308 to 0.313 KGS/KZT. As a whole, the KZT selling rate in currency exchange offices decreased by 0.16 per cent during the month, and made 0.310 KGS/KZT as of the end of June. A daily average fluctuation of KZT exchange rate dropped from 0.21 to 0.14 per cent, and an average margin decreased during the month from 0.71 to 0.65 per cent.  

The total volume of currency buying/selling transactions in currency exchange offices made KGS 2,224.0 Million in June, increased by 11.6 per cent compared to the previous month. The increase of transactions volume was observed regarding all major currencies, except the Euro. In such situation the specific volumes of USD transactions reduced to 64.9 per cent, EUR transactions made up 8.4 per cent, whereas the shares of transactions with RUR and KZT increased up to 12.1 and 13.8 per cent correspondingly. The share of transactions with other currencies remained at the level of 0.8 per cent in the structure of currency transactions.