Head of the National Bank: Kyrgyzstan Needs to Reduce Its Dependence on the Dollar and Foreign Loans

Almaz Baketaev, Chairman of the National Bank of Kyrgyzstan, stated the need to further de-dollarize the economy, develop the domestic financial market, and reduce the country’s dependence on external borrowing. He made these remarks while addressing members of the Jogorku Kenesh during a review of the National Bank’s performance for 2025.

According to the head of the financial regulator, the world is undergoing massive geopolitical and economic changes, the trajectory of which is difficult to predict today. Under these conditions, it is important for Kyrgyzstan to adhere to the fundamental principles of economic policy and strengthen its internal stability.

“The world is currently undergoing enormous shifts, the trajectory of which is difficult to predict, so we must strictly adhere to basic economic principles,” Baketaev noted.

The head of the National Bank identified four key areas that should ensure the stability of the country’s financial system.

He identified the first priority as maintaining macroeconomic stability, including the ability to forecast and contain inflation, as well as building a resilient financial system capable of responding quickly to external shocks.

The second priority remains the de-dollarization of the economy. According to Baketaev, the country’s dependence on foreign currency continues to decline.

“ “Dollarization is declining here, both in terms of loans and deposits. The national currency is becoming more attractive,” the head of the National Bank emphasized.

He identified the digitization of the financial sector as the third priority. The development of banking and non-banking digital services allows the population to gain faster and more convenient access to financial services and resources.

Baketaev paid particular attention to the development of the domestic financial market and raising funds within the country rather than through external borrowing.

According to him, Kyrgyz citizens have disposable income, but many do not know where to invest it and often fall victim to pyramid schemes.

“Investing in any kind of pyramid scheme is very risky and dangerous; this must not be allowed to happen. The public has money. And thanks to the president’s initiative, it is now possible to purchase government securities directly through the MegaPay mobile app,” the National Bank chairman noted.

The next step, in his view, should be the creation of a mechanism for the Ministry of Finance to repurchase government securities, which will increase their liquidity and attractiveness to the public.

Baketaev emphasized that the National Bank and the Cabinet of Ministers are currently working closely together to create the safest and most favorable conditions for domestic investors.