BISHKEK, Kyrgyzstan, August 28. Kyrgyzstan is
considering a proposal to conduct all domestic trade exclusively in
the national currency, according to a document prepared by members
of the Kyrgyz Parliament, Trend reports.
“The effective development of the country’s economy is largely
determined by the state of monetary circulation. One of the key
conditions for the stable functioning of the monetary system is
legislative regulation of monetary transactions,” the justification
paper for the proposal states.
The document notes that internal trade in Kyrgyzstan, including
transactions related to real estate, motor vehicles, loans, and
travel services, is currently conducted in foreign currencies,
which exerts pressure on the national currency.
The credit system and installment purchases of property create
difficulties for citizens in repaying debts, particularly when
there are sharp fluctuations or artificial increases in foreign
currency exchange rates.
Under the proposed law, entities with income and expenses in
foreign currencies would still be permitted to conduct export and
import-related transactions in foreign currencies.
