Foreign Exchange Market
(July 2007)
In the first half of July, the situation at the foreign exchange market was stable, fluctuations of the USD exchange rate were insignificant. However, in the middle of the month, the USD exchange rate went down due to the reduction of commercial banks’ demand for foreign exchange, as well as due to the decrease of USD exchange rate against the major world currencies in the external markets. Then the rate became stable, and later on it fixed at the level of 37.8 KGS/USD.
For the month in the whole, the weighed average USD exchange rate at the inter-bank currency auctions was down by 0.4 per cent and made 37.8 KGS/USD as of the end of July. USD accounting rate was also down by 0.4 per cent and made 37.8 KGS/USD.
The total volume of transactions at currency auctions in July increased by 4.2 per cent as compared to the previous month, up to USD 57.8 Million. This growth was caused by the increase of the National Bank transactions volume by 7.8 per cent, which made USD 37.5 Million, while the volume of inter-bank transactions was down by 1.8 per cent.
The USD exchange rate in the exchange offices was generally decreasing in July. During the month in whole the USD selling rate in the exchange offices was down by 0.5 per cent, having made 37.7865
KGS/USD. On an average within the month it was by KGS 0.01 higher than the weighed average rate at inter-bank currency auctions. A daily average fluctuation of USD selling rate in exchange offices remained at the level of 0.02 per cent, and the average margin on USD buying/selling transactions was down from 0.28 to 0.26 per cent.
The EUR exchange rate dynamics in currency exchange offices, as usual, formed under the influence of its variations at the external markets. In the first half of July it was generally increasing, then, after the period of small fluctuations during the last week of the month, the rate was coming down. However, in the last day of July it increased again. During the month in the whole, the EUR selling rate in exchange offices increased by 1.2 per cent and made 51.9155 KGS/EUR. A daily average fluctuation of Euro selling rate increased within the month from 0.10 to 0.13 per cent, and the average margin on buying/selling transactions almost did not change and made 0.42 per cent.
The RUR selling rate in currency exchange offices was also increasing in the first half of July, then it varied within the narrow range, and in the end of the month it started coming down. For the month in whole it increased by 0.3 per cent, up to 1.4713 KGS/RUR as of the end of July. A daily average fluctuation of RUR selling rate increased from 0.09 to 0.10 per cent, the average margin was slightly down from 0.65 to 0.64 per cent.
The selling rate of KZT in currency exchange offices was generally coming down during the reporting month. For the month in the whole, the KZT selling rate in exchange offices decreased by 1.6 per cent and made 0.305 KGS/KZT as of the end of the month. The daily average fluctuation of KZT exchange rate was down from 0.14 to 0.13 per cent, and the average margin increased from 0.65 to 0.70 per cent during the month.
The total volume of currency buying/selling transactions in currency exchange offices in July increased by 3.3 per cent and made KGS 2,297.2 Million. The increase of transactions volume was observed for all major currencies, except KZT. The share of transactions with EUR increased up to 8.7 per cent, with RUR – up to 13.7 per cent, while the shares of transactions with USD and KZT decreased to 63.5 and 13.2 per cent, accordingly. The share of transactions with other currencies in the structure of currency transactions remained at the level of 0.8 per cent.
