Mr. Tolkunbek Abdygulov, the NBKR Chairman discussed the monetary policy issues with the representatives of the Embassy of France  

Mr. Tolkunbek Abdygulov, the Chairman of the National Bank of the Kyrgyz Republic, met with the representatives of the Embassy of France in Kyrgyzstan.   

The delegation from France was represented by Mr. Imbert Anselm, the Deputy Head of the Regional Economic Service of the Embassy of France in Moscow, concurrently Deputy Director of the Bank of France, Ms. Beatrice Sammartano, Attachй for economic and legal affairs of the Embassy of France in Moscow, as well as Mr. Ronan Ventez, the Head of the Economic Department of the Embassy of France in Kazakhstan.   

The participants of the meeting discussed the current economic situation in the Kyrgyz Republic, the situation in the currency market and the issues of monetary policy.   

Heads of the central banks of Kyrgyzstan and China signed memorandum of intentions  

Issues on cooperation between the NBKR and the People's Bank of China and signing of memorandum of intentions were discussed on September 29, 2015 during the visit of the delegation from China to the National Bank of the Kyrgyz Republic. The document was signed by Mr. Tolkunbek Abdygulov, the Chairman of the NBKR and Mr. Zhou Xiaochuan, the Chairman of the People's Bank of China.   

NBKR Deputy Chairmen Ms. Baktygul Jeenbaeva and Mr. Nurbek Jenish also attended the ceremony of signing the memorandum of intentions. The Chinese delegation was represented by Mr. Changchun Mu, the Deputy Chairman of the People’s Bank of China, Ms. June Hsu, General Director of the International Department of the People’s Bank of China, and Ms. Ming Ai, Director of the International Department of the People’s Bank of China.  

In his speech Mr. Tolkunbek Abdygulov, the NBKR Chairman, expressed confidence that signed document will open new possibilities for cooperation between the Kyrgyz Republic and the People's Republic of China in various sectors of economy. “We are glad to see you in Kyrgyzstan. It is a big event for us as the Chairman of the People's Bank of China visited the National Bank of Kyrgyzstan 10 years ago last time. I hope that we will be able to focus our efforts on enhancing cooperation and communication between our banks”, Mr. Tolkunbek Abdygulov said.  

In his turn, Mr. Zhou Xiaochuan, the Chairman of the People's Bank of China, expressed gratitude to the Kyrgyz side for warm reception and noted that memorandum of intentions will play a significant role in development of bilateral relationships and will open a new page in the history of inter-bank relationships. “I think that the purpose of our visit, first and foremost, is to exchange information with the Kyrgyz side. We shared our views and information about the situation in macro-economy of our countries, in monetary policy, as well as about the national currencies of Kyrgyzstan and China. Currently, our central banks are to solve a lot of issues. Signed document will be a road map for further planning and implementation of work for cooperation. This document is sure to serve as a good stimulus for further joint work”, Mr. Zhou Xiaochuan said.  

The Chairman of the People's Bank of China emphasized the necessity to improve cooperation between the NBKR and the People's Bank of China, since these relationships develop not as dynamic as both parties would like to. “In recent years we observe the trend of intensive cooperation between our countries in the areas such as trade and tourism. Meanwhile, the partnership between our financial institutions, including banks, falls slightly behind the dynamics of the above sectors of economy. Further financial cooperation is a very topical issue today. One of the opportunities available to our countries is swap in national currencies, which plays an important role in ensuring macroeconomic stability. The second direction of cooperation is the payment systems that facilitate work in the areas of trade and tourism. The third direction is the settlements in national currencies, because thereby we secure ourselves from exchange rate fluctuations. And it, of course, will provide our banks with an opportunity to open representative offices in the territory of two countries. Thus, the level of businesses financial servicing in the real sector of economy will be increased, a great contribution will be made to development of cooperation in the field of tourism and investments. I think that in the future we will be able to give more financial possibilities to both sides. China and Kyrgyzstan are good neighbors. Our political and economic relationships are developing very successfully and dynamically. I must say that Kyrgyzstan and China are equally interested in cooperation. We believe that all steps we have taken will serve to strengthen further friendship and cooperation between our countries. It is very important for financiers and bankers to train each other”, summarized the head of the People's Bank of China.    

Memorandum of intentions was signed to strengthen several areas of cooperation between the central banks of the People's Republic of China and the Kyrgyz Republic. Moreover, cooperation in the fields of trade and investments among financial institutions of two countries, contribution to more efficient use of the Chinese Yuan and the Kyrgyz Som, establishing contacts and exchange of necessary information regarding payments and settlements in the national currency in accordance with the laws, as well as promoting bilateral trade and direct investment for economic development of two countries.   

The delegation of the People's Bank of China headed by the Chairman Mr. Zhou Xiaochuan is on an official visit in the Kyrgyz Republic since September 28. In addition to talks with the administration of the National Bank of the Kyrgyz Republic and signing memorandum of intentions, within the framework of the visit, the members of the delegation met with Mr. A. Atambaev, President of the Kyrgyz Republic and Mr. T. Sariev, Prime Minister of the Kyrgyz Republic.  

The National Bank of the Kyrgyz Republic  

decided to increase the policy rate up to 10 percent 

On September 28, 2015 the Board of the National Bank of the Kyrgyz Republic decided to increase the policy rate by 200 basis points, up to 10 percent per annum. 

High economic growth rates in January-August of 2015 (6.8 percent) were mainly driven by the expansion of production at the "Kumtor" gold-mining company. Without "Kumtor", the real GDP growth was 4.5 percent.   

However, continues decline in foreign trade transactions and in inflow of remittances are still observed as well as due to devaluation of national currencies of the countries-major trade partners of the Kyrgyz Republic. External financial markets remain unstable, which combined with these factors is one of the main reasons for the increase of pressure in the domestic currency market of our country that can increase inflationary pressure in the short and medium periods.   

In the middle of September of the current year, the inflation in annual terms was 6.2 percent (as of September 18) as compared to 5.8 percent in the previous year.   

In view of forecasted dynamics of inflationary developments, the National Bank of the Kyrgyz Republic continues to monitor the situation in the national economy and will take appropriate measures of monetary policy consistent with statutory mandate. The monetary policy will be aimed at achieving and maintaining the inflation rate at the level of 5-7 percent in the medium term, which is determined by the Main monetary policy guidelines of the National Bank of the Kyrgyz Republic for the medium term.  

The next meeting of the Board of the National Bank of the Kyrgyz Republic on the monetary policy rate is scheduled for October 26, 2015.  

Licenses/certificates have been issued to the following NBFIs and exchange offices: 

1. “Rashidik” LLC (license № 5376 dated September 29, 2015 for carrying out foreign exchange operations in cash). Registration number of exchange office is 3354. Address: 166, Jibek Jolu Street, Bishkek city.  

2. “Kasym plus” LLC (license № 5375 dated September 29, 2015 for carrying out foreign exchange operations in cash). Registration number of exchange office is 3353. Address: 273, Chui Avenue, Bishkek city.  

3. “Talas obmen” LLC (license № 5374 dated September 29, 2015 for carrying out foreign exchange operations in cash). Registration number of exchange office is 3352. Address: Kievskaya/Kuliev Street, Bishkek city.  

Licenses/certificates of the following NBFIs and exchange offices have been cancelled/revoked: 

1. Javlonbek Shavkatovich Jorobaev IE (license № 5056 dated September 28, 2015 for carrying out foreign exchange operations in cash) due to license expiry. Address: Turatali market, Kara-Suu town, Osh region.  

2. Roza Dolatovna Bakirova IE (license № 5058 dated October 01, 2012 for carrying out foreign exchange operations in cash) due to license expiry. Address: Central market, Kochkor-Ata town, Jalal-Abad region.