KYRGYZSTAN-SOM Kyrgyzstan's currency slides against U.S. dollar after tenge plummets in neighbouring Kazakhstan

Record ID: 142927

  • Title: KYRGYZSTAN-SOM Kyrgyzstan's currency slides against U.S. dollar after tenge plummets in neighbouring Kazakhstan
  • Date: 20th August 2015
  • Summary: BISHKEK, KYRGYZSTAN (AUGUST 20, 2015) (REUTERS) VARIOUS OF ALA-TOO SQUARE VARIOUS OF PEOPLE IN FRONT OF CURRENCY EXCHANGE OFFICES (SOUNDBITE) (Russian) CURRENCY EXCHANGE OFFICE EMPLOYEE, AZAMAT ALMAZBEKOV, SAYING: "(U.S.) Dollar increased in price (to Kyrgyz som) here, because tenge fell in Kazakhstan and dollar seriously rose there, 35 per cent (increase) they say. Kazakhstan currency exchange also influenced Kyrgyzstan, and it started here as well. Bankers started buying dollars, commercial banks." CURRENCY EXCHANGE OFFICE EMPLOYEE COUNTING U.S. DOLLARS VARIOUS OF WOMAN IN CURRENCY EXCHANGE OFFICE COUNTING MONEY VARIOUS OF KYRGYZSTAN NATIONAL BANK CONFERENCE BUILDING DEPUTY HEAD OF KYRGYZSTAN NATIONAL BANK, NURBEK ZHENISH, AT NEWS CONFERENCE (SOUNDBITE) (Russian) DEPUTY HEAD OF KYRGYZSTAN NATIONAL BANK, NURBEK ZHENISH, SAYING: "We have sufficient reserves, today we have more than 1.9 billion U.S. dollars. If necessary, if it is needed tomorrow or on Monday, we will use interventions and will not allow an abrupt jump in exchange rate. I will say this again, today banking system has enough U.S. dollars. And there is no demand from the importers." PEOPLE WALKING BY CURRENCY EXCHANGE OFFICES SIGN READING (Russian): 'CURRENCY EXCHANGE OFFICE' PEOPLE AT CURRENCY EXCHANGE OFFICE (SOUNDBITE) (Russian) RUSSIAN TOURIST, NATALIA TESHKOVA, SAYING: "Last year when we came here 1 rouble cost 1.5 som. And now the rouble falls and it is not even 1:1. Of course we are very worried, we did not expect that, our vacation went slightly wrong. If the rate is so low, we are limited in expenses." PEOPLE BESIDE CURRENCY EXCHANGE OFFICES IN STREET CURRENCY EXCHANGE BOARD
  • Embargoed: 4th September 2015 13:00
  • Keywords:
  • Location: Kyrgyzstan
  • Country: Kyrgyzstan
  • Topics: General
  • Reuters ID: LVA8K3LNI5YH3CIORAJJR2S04HOZ
  • Aspect Ratio: 16:9
  • Story Text: Kyrgyzstan's authorities reassured the residents on Thursday (August 20) that the National Bank has means to support the local currency som, as tenge plummets in neighbouring Kazakhstan.
    Kyrgyz som slightly slid down against dollar (from 61 som to 62 som for one dollar) after Kazakhstan floated tenge, which lost more than a quarter of its value on Thursday (August 20).
    Azamat Almazbekov, who works in a currency exchange office in Kyrgyz capital, Bishkek, said the news from the neighbouring state urged bankers to buy foreign currency.
    "(U.S.) Dollar increased in price (to Kyrgyz som) here, because tenge fell in Kazakhstan and dollar seriously rose there, 35 per cent (increase) they say. Kazakhstan currency exchange also influenced Kyrgyzstan, and it started here as well. Bankers started buying dollars, commercial banks," he said.
    At the same time deputy head of Kyrgyz National Bank, Nurbek Zhenish, said the bank will not allow the som to drop abruptly.
    "We have sufficient reserves, today we have more than 1.9 billion U.S. dollars. If necessary, if it is needed tomorrow or on Monday, we will use interventions and will not allow an abrupt jump in exchange rate. I will say this again, today banking system has enough U.S. dollars. And there is no demand from the importers," he said in a news conference.
    A wave of devaluations and depreciations affected a number of national currencies in the region.
    Natalia Teshkova, a Russian tourist who came to Bishkek, said exchange rate spoiled her vacation.
    "Last year when we came here 1 rouble cost 1.5 som. And now the rouble falls and it is not even 1:1. Of course we are very worried, we did not expect that, our vacation went slightly wrong. If the rate is so low, we are limited in expenses," she said.
    The currencies in the region have been under pressure since last year when the rouble key trade partner Russia collapsed, driven lower by western sanctions as well as oil's declines.
    Kyrgyzstan is a member of a Customs Union with Russia and Kazakhstan and its per capita GDP is less than a tenth of neighbouring Kazakhstan's. Russia also provides financial assistance to the impoverished ex-Soviet republic.
    Cooling relations between Russia and the West over the crisis in eastern Ukraine and exchange of economic sanctions has severely undermined Kyrgyzstan's economy, heavily dependent on the income of guest workers.
    About one million of Kyrgyzstan's 5,5 million population work abroad and send money to support families back home.
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