Why is this important
The strengthening of the soum reduces inflationary risks and the cost of external debt, but can hit exporters hard. The exchange rate is supported by export earnings and active gold sales.
What happened
- The dollar depreciated by 61 soums and hit the level of 12,140 soums;
- The euro and pound fell by 152 and 200 soums, respectively;
- Ruble — minus 74 tiyin, exchange rate: 145.36 soums;
- In commercial banks, the dollar is being sold for 12,200-12,260 soums, and purchased for 12,080 soums;
- Over 8 months, the soum strengthened against the dollar by 3.4% — by 438 soums;
- In August — +109.32 sum.
Context
The IMF recommended that the Central Bank allow more fluctuations in the exchange rate to be more resilient to external shocks. The Central Bank stated that it has adopted the recommendations and is acting gradually. An increase in the supply of foreign currency against the backdrop of exports and transfers with weak demand strengthens the sum.
