Commercial banks continue to buy dollars at 87.45 KGS

On 6 November, the total volume of transactions on the interbank currency market reached $3.2 million, of which $1.5 million were settled on the day of conclusion and $1.7 million were deferred.

For comparison:

• 5 November — the volume of deferred settlements amounted to $2 million;
• On 4 November, it was $1.5 million;
• On 3 November, it was $4.3 million, including $4 million in immediate settlements.

At the same time, the dollar-KGS exchange rate was again fixed at 87.45, remaining stable since 29 August.

With the interbank exchange rate remaining unchanged, there is a difference between the interbank rate and the retail exchange rates for the population. Banks buy dollars from customers at 87.3-87.35 KGS and sell them at 87.75-87.8 KGS.

The spread between interbank and retail rates is due to several factors. But the main one is that in the interbank market, banks exchange large volumes of currency between themselves, which reduces transaction costs. For individuals, transactions are much smaller, so banks build in a margin to cover their costs.

In addition, there is always the risk of volatility. Retail rates are set taking into account possible intraday fluctuations. This is how banks insure themselves against unexpected changes.