Turnover of exchange offices of the Kyrgyz Republic amounted to KGS 97 billion in 2014
Licensed exchange offices of Bishkek city hide real income and sales of foreign currency. Such conclusion was made by the experts of the Center for Economic Research of the National Bank of the Kyrgyz Republic while studying the operations conducted by the exchange offices in the capital of Kyrgyzstan.
According to the market laws any commercial enterprise shall be profitable, otherwise, operations thereof may be terminated. However, the results of study show that approximately 41 (in 2013) and 96 (in 2014) of 243 exchange offices in the city had to terminate their operations due to their unprofitability. According to the Center for Economic Research this is due to a deliberate underestimation of exchange offices revenue, provision of inaccurate reported data. Moreover, some licensed exchange offices do not comply with a cash discipline, counteract inspections. Thus, undocumented cash of unknown origin in foreign and national currency was found in a number of licensed exchange offices according to the results of inspections. In other words, there is a shadow cash turnover of business entities engaged in foreign exchange.
The turnover of the exchange offices of the Kyrgyz Republic in 2014 amounted to KGS 97 billion. According to the National Bank, the amount of tax (mandatory patent) to be paid to the budget should have been KGS 36.6 million over the past year, whereas the State Tax Inspectorate reports about KGS 24.4 million.
For reference use
Study of licensed exchange offices operation in Bishkek was held by the Center for Economic Research of the National Bank of the Kyrgyz Republic within the period from November 2014 till June 2015. "Alliance" Exchange Offices Association has not confirmed its readiness to cooperate with the National Bank and to participate in the survey. The Center for Economic Research is a structural division of the National Bank of the Kyrgyz Republic responsible for applied economic and social research.
Licenses/certificates have been issued to the following NBFIs and exchange offices:
1. "Vostok Shamshykal" LLC (license № 5382 dated October 15, 2015 for carrying out foreign exchange operations in cash). Registration number of exchange office - 3357. Address: № 24/1, Shymkent bus station, "Dordoi" trading and entertainment complex, Bishkek city.
2. "BAIKAL-YUG" LLC (license № 5381 dated October 13, 2015 for carrying out foreign exchange operations in cash). Address: 428, Lenin Street, Osh city.
3. "Zaman Exchange office" LLC (license № 5380 dated October 13, 2015 for carrying out foreign exchange operations in cash). Address: w/n, intersection of Toktogul and Lenin Street, Karakol town.