ь During last time, some mass media publications, devoted to issues of economic sphere, in particular exchange rate, highlight certain concerns and pessimistic scenarios with regard to the exchange rate situation. In order to provide the publicity with more correct and complete information, the National Bank of the Kyrgyz Republic informs about the following.  

Nation Bank during implementation of the currency policy conforms to the regime of floating exchange rate, accepted by the Kyrgyz Republic. This regime assumes formation of exchange rate through market mechanisms, i.e. on the basis of supply and demand for foreign currency. As supply and demand for foreign currency constantly change depending on various factors, the population and business structures observe constant daily change of the exchange rate. In this relation, natural regularity should be noted – acute and considerable change of exchange rates causes large resonance among the publicity, no matter whether the exchange rate change is of increasing or decreasing character.  

In this regard, the National Bank constantly monitors the situation in financial markets and takes appropriate action for further provision of stable situation in the domestic financial market with existing market mechanisms and tools. 

In 2010, in the domestic foreign exchange market, as in 2009, there was the upward trend of the USD against KGS, caused by significant excess of demand over supply for foreign currency, despite some increase in money transfers volume (for comparison: within 10 months of 2010, money transfers amounted to 884.2 million USD; during the same period of 2009 - 726.4 million USD). Demand for foreign currency, as in previous periods, was formed with regard to the necessity to pay for imports of gas, fuels and lubricants as well as other imported goods. Moreover, the reasons for significant pressure on the exchange rate of KGS towards weakening of the national currency included introduced duties on petroleum products from exporters, closed borders with neighboring countries, decline in business activity and uncertain political situation in the republic. On its part, the National Bank in order to smooth acute fluctuations of the exchange rate performed foreign exchange intervention, both for purchase and sale of foreign currencies. 

From the beginning of 2010 to December 3, 2010, net sales of the National Bank in the inter-bank foreign exchange market amounted to 225.00 million non-cash USD. During this same period, the official exchange rate of USD increased by 2 soms 80 tyiyn from 44.0917 to 46.8900 soms per one dollar, i.e. by 6.35%. Over the same period of 2009 net sales of foreign currency amounted to 134.65 million USD, the official USD exchange rate increased by 4.50 soms from 39.4181 to 43.9220 soms per one dollar, i.e. by 11.42%. 

The current situation in the foreign exchange market is characterized by relative stability. The National Bank does not expect acute changes of the exchange rate of national currency against USD. Starting from November 1, 2010 to December 3, 2010, there has been little volatility in the currency market, the official rate of KGS ranged within 46.7910 - 46.9055. 

Performance of foreign exchange market operations, performed by the National Bank, is provided by international reserves, the volume of which is currently covered both by emerging today and potentially possible demand for foreign currency. International reserves of the National Bank as of December 2, 2010 amounted to 1 713.51 million USD. This amount of international reserves almost twice covers currency in circulation in the Kyrgyz Republic at the current rate and allows the National Bank to prevent acute changes of the exchange rates adversely affecting the socio-economic welfare of citizens and the economy as a whole. 

ь The National Bank of Kyrgyz Republic informs that on December 2, 2010, the Monetary Regulation Committee the National Bank of the Kyrgyz Republic agreed to maintain the base rate for crediting purposes of the LLC "Specialized fund for banks’ refinancing” at the level of 7.0 percent. The decision came into effect from December 2, 2010. 

ь The National Bank of Kyrgyz Republic performs the international open tender among mints for production and delivery of collectible coins from the series "Historical Events". The tender includes three lots: 

Lot №1 – silver coins of quality "proof" "Sovereign Kyrgyzstan”: drawing lots - 2000 pieces;  

Lot №2 – coins "Victory Peak" of single design: 

§ silver quality "proof" – drawing lots - 3000 pieces; 

§ copper-nickel quality "brilliant uncirculated" - drawing lots - 5000 pieces;  

Lot № 3 - copper-nickel coins of quality "brilliant uncirculated" "Khan-Tengri" - drawing lots - 5000 pieces;  

Tender documents should be sent on request of applicants until December 31, 2010. Bid submission ends on January 21, 2011 at 17.00 hours of local time. Requests for tender documents and other matters should be directed to email address: tender@nbkr.kg or on the facsimile number: 996 (312) 66-91-53.  

 

 

News of non-banking financial and credit institutions 

 

The National Bank of the Kyrgyz Republic issued licenses/certificates to the following non-banking financial institutions and exchange offices: 

1. LLC MCC “Moy Credit” (certificate on accounting registration No. 322, dated November 30, 2010 for micro crediting of physical and legal entities). Legal address: 40-207, Mira Avenue, Bishkek; 

2. LLC MCC “Aktilek” (certificate on accounting registration No. 323, dated November 30, 2010 for micro crediting of physical and legal entities). Legal address: 13, Akshookum Street, micro-district “Ak-Tilek”, Bishkek; 

3. LLC MCC “Ariet Credit” (certificate on accounting registration No. 324, dated December 2, 2010 for micro crediting of physical and legal entities). Legal address: 7, Eginchieva Street, Bishkek; 

4. PE Bekmurzaev Eshnazar (License No. 4524, dated November 30, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2634. Legal address: 164-12, Moskovskaya Street, Bishkek (store “KUSH”); 

5. PE Satybaldiev Yuldash Maymetovich (License No. 4523, dated November 30, 2010 for conducting cash foreign exchange transactions). Registration number of exchange office: 2635. Legal address: 528, Lenin Street, Chaldovar village, Chui oblast; 

 

Licenses and certificates of the following non-banking financial and credit institutions were cancelled or revoked: 

 

1. License No.178–кс of the Credit Union “Nurisal”, dated May 8, 2000, was cancelled from December 1, 2010 on the basis of minutes of the general meeting of participants, dated November 26, 2010, ”On self-liquidation”. Legal address: 137/3, Abdrahmanov Street, Karakol, Issyk-Kul oblast; 

2. License No. 4223 of the PE Jutanov Zalkarbek Mametnazarovich, dated December 24, 2009, was cancelled from November 29, 2010 on the basis of application on termination of the exchange office activity. Legal address: Bazarnaya Street, Osh, Osh oblast (universal store “Mir”); 

3. License No. 4208 of the PE Nasretdinov Sardor Abdurashitovich, dated December 3, 2009, was cancelled from November 29, 2010 on the basis of application on termination of the exchange office activity. Legal address: 9, Karasuiskaya Street, Osh, Osh oblast (central market of Osh city); 

4. License No. 4238 of the PE Kirgizov Utkir Turdybaevich, dated January 1, 2010, was cancelled from December 2, 2010 on the basis of application on termination of the exchange office activity. Legal address: Bazarnaya Street, Osh, Osh oblast (second floor of the universal store “Mir”); 

5. License No. 4220 of the PE Sherbaev Umutjan Husenbaevich, dated December 21, 2009, was cancelled from December 2, 2010 on the basis of application on termination of the exchange office activity. Legal address: point 6, passage 0, Turatali market, Karasuu town, Osh oblast; 

 

 

Inter-bank payments 

 

Indices of inter-bank payment systems (IPS)
	Total IPS			Including
				Clearing system			Gross system
	Volume,   KGS		Quantity,   items	Volume,   KGS	Quantity,   items		Volume,   KGS	Quantity,  items
Indices from the period of November 29, 2010 – December 3, 2010 (reporting period)
Absolute value for a week	10 150 012 756,61		25 364	1 279 969 658,26		22 565	8 870 043 098,35	2 799
Share of IPS payments (%)	100,0		100,0	12,6		89,0	87,4	11,0
including (%):
Net positions of the Single Interbank Processing Center	0,3		1,4	2,1		1,5	0,0	0,0
Outgoing to the Central Treasurer's Office	22,4		21,1	22,4		23,2	22,4	3,8
Incoming from the Central Treasurer's Office	22,4		12,6	9,9		14,0	24,2	1,6
Outgoing to the Social Fund	0,3		2,9	2,4		3,2	0,0	0,0
Incoming from the Social Fund	0,5		7,2	4,2		8,0	0,0	0,0
Average weekly indices for the previous month
Absolute Value		8 512 755 057,91	21 421	1 118 070 789,67		19 223	7 394 684 268,25	2 198
Indexes deviations of the reporting period from the weekly average indexes of the previous month
		1 637 257 698,70	3 943	161 898 868,59		3 342	1 475 358 830,10	601
%		19,2	18,4	14,5		17,4	20,0	27,4

 

 

Indices of “Elcart” system * 

 

As of	November 26, 2010	December 3, 2010
Number of cards in circulation (exclusive of the re-issued cards)	102 221	102 414
Number of pos-terminals:   - in banks   - in trade centers	483  369  114	498  369  129
Number of automated teller machines	66	70