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On the NBKR "overnight" deposits 

On February 17, 2014, the National Bank of the Kyrgyz Republic introduced a new instrument of the monetary policy "overnight" deposits. By means of this instrument the commercial banks will be able to deposits their funds in the NBKR at particular interest rate for one night.  

On February 13, 2014, the Committee on monetary regulation of the National Bank of the Kyrgyz Republic resolved to set the "overnight" deposit rate at the level of 1.00 percent.  

Introduction of a new instrument is aimed at strengthening the work of interest rate transmission channel of the monetary policy towards the real economy. The objective of the monetary policy remains the same to achieve and support stability of prices.  

This instrument will stimulate commercial banks to revise the interest rate policy on their demand deposits and current accounts of their clients, and further increase inflow of funds into the banking system by means of decreasing cash component. 

Information about devaluation of the Kazakh tenge as of February 11, 2014  

 

On February 11, 2014, the National Bank of the Republic of Kazakhstan fulfilled one-time devaluation of the Kazakh tenge up to approximately KZT 185 from KZT 155.56 per USD 1. Moreover, the regulator informed about decrease in the volume of interventions and establishment of the Kazakh tenge fluctuation corridor from KZT 185 per USD 1, plus/minus KZT 3.  

 

In other words, the value of the Kazakh tenge decreased in nominal terms by KZT 30 or approximately by 19%. Meanwhile, the fixed exchange rate regime of the Kazakh tenge remained the same.  

 

The National Bank of the Republic of Kazakhstan explained that these actions were justified by the economy of Kazakhstan, which was closely integrated into the global economy, and the National Bank of the Republic of Kazakhstan had to take into account the situation in the world financial and commodity markets.  

 

Thus, since the beginning of the current year, the value of the Kazakh tenge against the U.S. dollar decreased by 20.1%.  

 

Kazakhstan is a member of the Customs Union and therefore the economy of Russia and Belorussia is sure to affect the economic situation in Kazakhstan and vice versa. 

 

For example, in the last year of 2013, the Republic of Belarus was forced to allow devaluation of the Belarusian ruble against the U.S. dollar by 11.1%. Since early 2014 till February 11, 2014, the value of the Belarusian ruble decreased by 1.7%. The value of the Belarusian ruble decreased altogether by 12.8%.  

 

In 2013, the value of the Russian ruble decreased against the U.S. dollar by 7.5% and since the beginning of the current year till February 11, 2014 it decreased by 6.5%. The value of the Russian ruble decreased altogether by 14%. 

 

In 2013, the value of the Kyrgyz som decreased against the U.S. dollar by 3.9% and since early 2014 till February 11, it additionally decreased by 3.9%. The value of the Kyrgyz som decreased altogether by 7.8%.  

 

Previous devaluation of the Kazakh tenge occurred on February 4, 2009, when the National Bank of the Republic of Kazakhstan changed equilibrium value of the USD/KZT exchange rate, having increased the value of the U.S. dollar from KZT 120 per USD 1 to KZT 150 with fluctuation of plus-minus 3% or KZT 5. In other words, one-time increase of the U.S. dollar exchange rate constituted 25%. Such rapid change in the value of the Kazakh tenge was conditioned by negative effect of exacerbation of the global financial crisis in 2008 and the economic situation in Russia during that period.  

 

The situation in the foreign exchange market of the Kyrgyz Republic is different, as the regime of floating exchange rate is introduced in our country, which is effective in the situation of adaptation to changes in the world markets and domestic macroeconomic situation.  

 

In 2013, the USD/KGS exchange rate remained stable, it was not necessary to involve the National Bank. Therefore, in was enough for the NBKR to carry out ad-hoc intervention on sale of the U.S. dollars in the volume of USD 14.7 million. The situation in the current year is different, some pressure on the foreign exchange market is observed, which is resulted from external shocks first from Russia, and now from Kazakhstan. In this respect, in order to smooth violent fluctuations of the exchange rate, the National Bank carried out three interventions: on January 21 in the volume of USD 9.9 million, on January 24 USD 17.5 million and on February 05 USD 7.25 million. Totally, the volume of intervention in 2013 amounted to USD 34.65 million. 

The National Banks constantly monitors the current situation in the foreign financial markets and in the domestic foreign exchange market. Available international reserves in the amount of USD 2.2 billion will contribute to satisfying appropriate demand for the foreign currency. In case of necessity, the National Bank of the Kyrgyz Republic will carry out interventions both in the cash and non-cash foreign exchange markets in order to avoid panic among the population and smooth violent fluctuations of the exchange rate. 

There are no reasons for the Kyrgyz som devaluation the NBKR  

Press-conference was held in the National Bank of the Kyrgyz Republic on February 12. The Deputy Chairman, Suerkul Abdybaly tegin and the head of the monetary operations department of the central bank, Raushan Seitkasymova, addressed the journalists and submitted information on the current situation in the foreign exchange market of Kyrgyzstan and measures taken by the NBKR for the purposes of stabilization of the national currency exchange rate.  

In addressing the briefing, Abdybaly tegin S. assured the journalists that there were no reasons for concerns due to the situation in the foreign exchange markets of the neighboring countries. "The population and commercial banks of Kyrgyzstan should not panic. The situation in the domestic foreign exchange market is stable. Sharp fluctuations of the exchange rate are not forecasted," he emphasized.  

The Deputy Chairman informed that since the beginning of the year, the National Bank had implemented 4 interventions in the amount of USD 61.78 million. "The last intervention in the amount of USD 27.13 million implemented on February 11 after the Kazakh tenge devaluation smoothed fluctuations in the market. There are no reasons for sharp devaluation of the national currency in the domestic market. We are importing country, while Russia and Kazakhstan are exporting countries. Our economies are absolutely different," he explained.  

Meanwhile, R. Seitkasymova emphasized that the National Bank constantly monitors the current situation in the foreign financial markets and in the domestic foreign exchange market. The banking system is provided with sufficient amount of the foreign currency, which will enable to satisfy potential demand for it. Moreover, in case of necessity the National Bank will implement interventions both in the cash and non-cash foreign exchange markets in order to avoid panic among the population and smooth sharp fluctuations of the exchange rate," she said.  

Having heard the speakers, the mass media representatives asked questions regarding further growth of the U.S. dollar exchange rate, stability and competitiveness of the Kyrgyz som, integration of the Kyrgyz Republic into the Customs Union, and operations carried out by the domestic banks with the funds from Kazakhstan.  

In giving comments on the last issue, the Deputy Chairman said that the operations carried out by the commercial banks of the Kyrgyz Republic with the funds from Kazakhstan depend on the size of liabilities and assets in the Kazakh tenge. "The Kazakh tenge devaluation is sure to have influence on these operations. However, currently, it is difficult to say something; everything will become clear at the end of this month. Nowadays, all banks are normally operating. There are no reasons for concerns yet," declared S. Abdybaly tegin.  

Licenses/certificates have been issued to the following non-bank financial institutions and exchange offices: 

 

Certificate of accounting registration of LLC MCC "Aikol finance" № 480 dated February 10, 2014 for micro-crediting of individuals and legal entities. Legal address: apt. 22, bldg. 26, Usenov str., Bishkek.  

 

Certificates/licenses of the following non-bank financial institutions have been cancelled /revoked: 

 

Certificate of accounting registration of LLC MCC "Chance Plus" № 359 dated April 19, 2011 for micro-crediting of individuals and legal entities has been cancelled since February 10, 2014 according to the decision of the founder dated January 28, 2014. Legal address: w/n, M. Isakov str., Naryn city, Naryn region.  

Certificate of accounting registration of LLC MCC "Kireshe and Ko-GGG" № 441 dated March 23, 2012 for micro-crediting of individuals and legal entities has been cancelled since February 10, 2014. Self-liquidation according to the decision of the founder dated December 12, 2013. Legal address: 150, Jibek-Jolu str., Bishkek.  

Certificate of accounting registration of LLC MCC "Express-invest" № 77 dated April 06, 2007 for micro-crediting of individuals and legal entities has been cancelled since February 11, 2014 according to the minutes № 1-2014 of the Companys participants on liquidation. Legal address: 51, Mederov str., Bishkek.  

License of CU "Presto" № 208 dated October 04, 2000 has been cancelled since February 12, 2014. Self-liquidation according to the minutes №19 of the general meeting of the CU participants dated February 11, 2014. Legal address: 29/13, Tynystanov str., Karakol town, Issyk-Kul region.  

 

 

Interbank payments 

Interbank Payment Systems (IPS) indicators 

 

Total IPS 

including 

Clearing system 

Gross system 

Volume, 

KGS 

Q-ty,  

pcs  

Volume, 

KGS 

Q-ty,  

pcs  

Volume, 

KGS 

Q-ty,  

pcs  

Indicators for the period from February 10 to February 14, 2014 (reporting period) 

Absolute Value 

20 456 157 473.37 

68 665 

2 016 780 758.01 

64 922 

18 439 376 715.36 

3 743 

Share in IPS payments (%)  

100.0 

100.0 

9.9 

94.5 

90.1 

5.5 

including 

(%):  

 

 

 

 

 

 

Net positions of the Common Interbank Processing Center  

0.1 

1.3 

1.3 

1.4 

0.0 

0.0 

Outgoing to the Central Treasury  

8.3 

7.5 

19.7 

7.9 

7.0 

0.9 

Incoming to the Central Treasury  

9.5 

31.1 

15.2 

32.7 

8.9 

3.5 

Outgoing to the Social Fund  

1.1 

8.0 

10.8 

8.4 

0.0 

0.0 

Incoming to the Social Fund  

1.2 

19.4 

12.4 

20.5 

0.0 

0.0 

Average weekly indicators for the last month 

Absolute Value 

14 962 591 871.41 

53 741 

1 426 019 406.67 

50 660 

13 536 572 464.74 

3 081 

Deviation of indicators for the reporting period from average weekly indicators for the last month 

Absolute Value 

5 493 565 601.96 

14 924 

590 761 351.34 

14 262 

4 902 804 250.62 

662 

36.7 

27.8 

41.4 

28.2 

36.2 

21.5 

 

 

 

Elcart System indicators 

As of  

10.02.2014 

17.02.2014 

The total number of issued cards  

(excluding reissued)  

260 953 

262 819 

Number of POS-terminals:  

- in banks  

- in sale outlets  

1284 

703 

581 

1293 

705 

588 

Number of ATMs  

339 

341