The National Bank of Kyrgyzstan increased its reserves by 44.6% over the year

The National Bank’s total assets reached 896.97 billion KGS at the end of March. Growth amounted to approximately 44.6%, with monetary gold playing a key role in this.

During the same period last year, the National Bank of Kyrgyzstan’s assets stood at 620.33 billion KGS. Over this period, the volume of monetary gold more than doubled — rising to 608.84 billion KGS from 292.45 billion a year earlier. 

Its share in the asset structure has grown significantly, becoming the main source of growth. Against this backdrop, non-monetary gold and reserves declined to 102.39 billion KGS.

Other asset categories are showing more subdued growth. 

It should be noted that 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.