Why is this important
The soum has been strengthening against the dollar for several months. Since the beginning of the year, the growth has been 5%, which reduces import prices and strengthens confidence in the national currency. The trend is supported by export revenues and remittances.
What happened
- the dollar decreased by 30.89 soums following Wednesday’s trading;
- the euro increased by 1.49 soums, the ruble decreased by 0.73 soums;
- this is the minimum USD exchange rate to the sum from November 6, 2023;
- Central Bank Chairman Timur Ishmetov previously noted that the strengthening of the national currency is linked to the growth of currency supply and the influx of transfers.
Context
In August, the dollar exchange rate also decreased and reached its lowest values since the end of 2023. The IMF advised the Central Bank to allow more exchange rate fluctuations to protect against external shocks. The strengthening of the soum reflects the current balance of exports, imports, and currency flows.
