Members of Kyrgyzstan’s Parliament, the Jogorku Kenesh, have proposed that the national currency, the som, be established as the only means of payment in the country.
The draft bill establishes that the som must be used in all domestic transactions, except for those related to export and import. It is seen as a step to reduce Kyrgyzstan’s dependence on foreign currency, and stabilize the country’s financial system.
The draft law emphasizes that using foreign currencies — especially in real estate, vehicle purchasing, and lending transactions — creates additional risks for citizens. Sharp fluctuations in exchange rates make it more difficult for borrowers to repay debts.
Similar measures have also been taken in Turkmenistan, where using foreign currency for everyday payments is almost entirely outlawed. Iraq has banned all domestic transactions to strengthen and stabilize the local currency, the Iraqi dinar.
