Kyrgyzstan has lost nearly $1 billion in reserves over two months due to gold

Kyrgyzstan’s international reserves have fallen by nearly $1 billion since the start of 2026, with the revaluation of gold against a backdrop of high volatility in global prices being the key factor.

According to the National Bank, gross reserves fell from $10.18 billion in January to $8.69 billion in March — a drop of 14.6%. In just two months, losses amounted to around $1.48 billion.

However, a significant portion of this decline is due to revaluation. This is because the structure of Kyrgyzstan’s reserves remains heavily dependent on gold, which accounts for 76.5% of the total. This makes the figures sensitive to fluctuations in the price of the precious metal.

At the start of the year, reserves stood at around 1.44 million troy ounces of gold. At the end of January, when prices peaked ($5,510.9 per ounce), the value of the gold component was estimated at $7.94 billion. In March, with prices falling to $4,621.9, it stood at $6.66 billion. According to current estimates ($4,870.2 per ounce), it stands at around $7.02 billion.

Thus, the value of the gold component of reserves has fallen by around $920 million (-11.6%) from its January peak.

A decline in reserves against the backdrop of a correction in gold prices is also being observed in the region. In Kazakhstan, for instance, international reserves fell by $9.4 billion in March to $129.5 billion (including the National Fund). The main contribution came from the fall in the value of gold assets (-10.5%), as well as pressure on the foreign exchange market due to demand for imports and external debt servicing.

Current trends highlight the vulnerability of Kyrgyzstan’s reserves to commodity price fluctuations.

In their concluding statement, staff from the International Monetary Fund’s Consultative Mission noted that a more flexible exchange rate regime and diversification of the reserve composition would enhance resilience to shocks. 

“Although international reserves have increased due to the revaluation of gold reserves, the high concentration of gold makes the economy vulnerable to commodity price volatility. Further diversification of reserves and the conversion of usable gold into monetary gold will strengthen external resilience and further improve reserve management,” the statement said.