Kyrgyzstan continues to reduce dependence on US dollar

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Kyrgyzstan continues to experience a gradual decrease in the dollarization of its economy. As of the first nine months of 2024, deposit dollarization stood at 43.9%, 1.8% lower than at the beginning of the year. Loan dollarization decreased to 19.9%, down by 2.1% since the start of the year, Akchabar.kg reports.

At the same time, short-term interbank money market rates remain near the lower boundary of the interest rate corridor set by the National Bank of Kyrgyzstan. This indicates a stable situation in the financial market, according to the regulator's press service.

By the end of the first ten months of 2024, the volume of loans issued by banks increased by 22%, while deposits grew by 31.7%.

Additionally, the National Bank of Kyrgyzstan has decided to maintain the key policy rate at 9%. The decision will take effect on November 26, 2024.

This decision is attributed to stable inflation conditions in the country. Annual inflation in November was 5.2%, down from 7.3% at the beginning of the year, and remains within the medium-term target range of 5–7%. Despite heightened domestic demand and the impact of tariff policies, the pace of price increases for food and non-food items is slowing.

Economic activity in Kyrgyzstan remains robust, driven by dynamic growth in construction and services. Real GDP growth over the first ten months of 2024 reached 9.6%. This growth is supported by rising household incomes, increases in real wages, and an inflow of remittances. There is also an increase in investments, primarily from domestic sources.

CentralasianLIGHT.org
November 26, 2024