Foreign Exchange Market  

(Novermber 2008) 

In November on the foreign exchange market there was a tendency of US dollar exchange rate increase, though there was a certain decrease in the second half of the first decade and at the end of the month. Herewith US dollar strengthening rate in the domestic foreign exchange market in the reporting period was rather lower than in September and October. This was affected by the reduction of negative trade balance as well as by situation on foreign markets, where within the reporting month there was differently directed dynamics of US dollar against major world currencies.  

The National Bank of the Kyrgyz Republic participated on the interbank foreign exchange market both as a seller and purchaser of US dollar.  

In general the weighted average USD rate in the inter-bank foreign exchange markets increased by 1.1 percent and constituted 39.2793 KGS/USD at the end of November, whereas the discount USD rate increased by 2.8 percent and constituted 39.2956 KGS/USD.  

The overall transactions volume on USD sale/purchase in the foreign exchange markets decreased by 8.4 percent in comparison with the previous month and constituted 67.3 million US dollars. The volume of transactions of the National Bank of the Kyrgyz Republic on USD purchase constituted 11.6 million US dollars, and on USD sale – 22.5 million US dollars. The volume of transactions of commercial banks on the USD purchase/sale decreased by 7.1 percent in comparison with October and constituted 34.1 million US dollars. 

EUR exchange rate dynamics in currency exchange offices was also formed mainly under the influence of its dynamics against US dollar on the external markets. Within a month, the weighted average EUR selling rate in exchange offices was fluctuating within the range of 49.23-50.78 KGS/EUR. In general within the reporting period the weighted average EUR selling rate increased by 1.0 percent and constituted 50.6263 KGS/EUR by the end of the month. The daily average fluctuation of EUR selling rate decreased from 0.44 to 0.37 percent and the average margin on buying/selling transactions decreased from 0.83 to 0.67 percent. 

In November the RUB exchange rate dynamics in currency exchange offices fluctuated in rather narrow range. In general, the monthly weighted average RUB selling rate increased by 0.4 percent and constituted 1.4080 KGS/RUB by the end of the reporting period. The daily average fluctuation of RUB selling rate decreased from 0.28 to 0.15 percent whereas the average margin decreased from 0.95 to 0.85 percent. 

The KZT exchange rate in currency exchange offices was mainly increasing over the whole month. In general, the monthly weighted average KZT selling rate in exchange offices increased by 1.5 percent and constituted 0.3247 KGS/KZT by the end of the reporting period. The daily average fluctuation of KZT exchange rate decreased from 0.31 to 0.09 percent whereas the average margin decreased from 1.16 to 0.89 percent.  

In November, the total volume of currency buying/selling transactions in currency exchange offices increased by 21.5 percent and constituted 3051.1 million soms. The growth of transactions volume was noted for all types of currencies excluding for USD buying/selling transactions. As a result, the share of transactions with USD increased to 69.6 percent, whereas the shares of transactions with EUR, RUB and KZT decreased to 7.7, 12.7 and 9.2 percent correspondingly. The share of transactions with other currencies decreased from 0.9 to 0.8 percent.