Why is it important
A weakening of the dollar against the som usually supports importers’ purchasing power and can reduce inflationary pressure. It is also a signal that the supply of currency exceeds demand or that there is an inflow of foreign currency.
What happened
The exchange rate dipped below 12,400 soums. The exchange rates of other major currencies have also decreased:
- Euro — 14,425.01 soums (-32.76);
- Russian ruble — 153.13 soums (-1.17);
- Chinese yuan — 1,731.92 soums (−6.35);
- Kazakh tenge — 22.91 soums (−0.10).
Context
At the end of August and the start of September, the dollar trades within the range of 12,382-12,480 soums. This reflects the gradual strengthening of the sum amid monetary policy stabilisation and potential growth in foreign exchange reserves.
