National Bank Head Reports Key Indicators to Parliament

Kyrgyzstan's National Bank has maintained stability in the domestic currency market and achieved record international reserves, according to a report presented to the Jogorku Kenesh (parliament). Central Bank Chairman Almaz Baketaev attributed these achievements to a carefully balanced monetary policy, which helped prevent excessive price increases despite external risks and global price volatility.

The report highlighted that the key interest rate was kept between 9% and 11%, resulting in an annual inflation rate of 9.4%. International reserves saw a substantial increase of 69.1% over the year, reaching $8.6 billion. The national currency remained largely stable, with the average exchange rate holding at 87.35 Kyrgyz som per U.S. dollar. To smooth out sharp fluctuations, the National Bank conducted interventions totaling $853 million.

Baketaev also noted a significant increase in public and business confidence in the banking system, evidenced by strong growth across key financial indicators. Bank assets grew by 48.5%, surpassing 1.2 trillion soms. The deposit base expanded by 46.4% to 866.2 billion soms, while the loan portfolio increased by 48% to 507 billion soms. Financing under Islamic principles also doubled to 21.1 billion soms, and the charter capital of commercial banks more than doubled to 161.5 billion soms.

Further indicators of financial health include a notable reduction in dollarization within the loan portfolio, which fell from 21.1% to 18.3%. The report also detailed advancements in digital payments, with 114,100 unified QR codes installed across trade, service, and government institutions, facilitating 578.9 million payments. The total number of payment cards in circulation reached 9.19 million, a 7.9% increase year-on-year.

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The main task of the regulator remained ensuring price stability in the country. Despite external risks and Kyrgyzstan's dependence on world prices, the National Bank's balanced policy prevented excessive growth in the cost of goods.