The National Bank accounted for over 60% of foreign exchange trading: banks purchased $128 million over the week

During the week of 15-19 September, commercial banks purchased $128 million on the currency market. More than 60% of this amount was provided by the National Bank, which entered the market with an offer of US currency for the first time since May this year.

At the very beginning of the trading week, on 15 September, the regulator intervened in trading, selling $81.5 million on the market. Most of this amount, $53 million, was sold with settlement on the date

of the transaction, and another $28.5 million with settlement on a date other than the transaction date. The National Bank sold dollars at 87.45 KGS.

It is interesting that the regulator entered the currency market after almost four months of silence at a time when the dollar was relatively stable, holding in the range of 86.7 KGS to 87.45 KGS since April.

In addition to the regulator's money, another $11 million was sold on 15 September, of which $8.8 million was settled on a date other than the transaction date.

On 16 September, transactions totalled only $8.2 million, on 17 September — $13.5 million, and by the end of the week, volumes returned to their usual level — about $4.6 million — $9.2 million per day.

Despite such large sales, the som exchange rate remained virtually unchanged. On Monday, it closed at 87.44 per dollar, and from 16 September, it remained stable at 87.45, closing the week at that rate.

This is the fourth intervention by the National Bank of the Kyrgyz Republic since the beginning of the year. During this time, the regulator sold a total of $378.6 million.