Published
06/07/2026, 17:27The volume of excess liquidity in Kyrgyzstan’s banking system continues to grow. This is putting additional pressure on inflation, which is why the National Bank of the Kyrgyz Republic has stepped up measures to withdraw excess liquidity.
The regulator has increased the issuance of notes with varying maturities and is more actively attracting funds through overnight deposits.
The growth in excess liquidity is linked to the actions of both the monetary system and public finances.
According to the National Bank, the average daily volume of excess liquidity prior to sterilisation operations stood at 157.8 billion KGS. This is 14.1% higher than in the previous quarter and 39.9% higher than a year ago.
In other words, there is more spare cash in the banking system, and the regulator is actively ‘withdrawing’ it from the market to keep inflationary pressure in check.
