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Kyrgyzstan Review, 10 years ago

[21.03.23] Dollar- the First Victim of Iraq Crisis

The sudden change in the som-dollar exchange rate is attributed by the National Bank specialists to the geopolitical situation around Iraq.
G. Isakova, head of monetary operations department at the NBKR pointed out that situation in the foreign exchange market has influenced the internal dollar-som rate in the Kyrgyz market. Besides, the lower rate of dollar is also the consequence of arbitrage activities of the local traders and investors.
Last week marked a 4.5 % drop of dollar som rate down to 43 dollars per som.
G Isakova believes that it is temporary
Meanwhile, the National Bank intends to purchase American currency in the inter-bank currency market to level out the dollar-som rate. Isakova also emphasized that there is no ground for economic instability

Rossyiskaya Gazeta, March 21, 2003

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