According to the Chairman of the National Bank of Kyrgyzstan, Melis Turgunbekov, a strong currency depends on the expectations of the population and businesses. When people are confident that their money will retain its purchasing power, the economy demonstrates stability. Otherwise, dollarization begins, demand for cash increases, and an investment pause is observed.
At the end of February this year, the National Bank decided to raise the discount rate to 12%. This step was anticipated in the regulator's monetary policy and has a broader economic context. The increase in the rate reflects the assessment of inflation risks, the external economic situation, and domestic demand, as well as demonstrating the National Bank's readiness to respond promptly to changes in the economic environment.
This decision serves as a guideline for the financial sector, businesses, and the population, contributing to a better understanding of the National Bank's policy and strengthening confidence in price stability. This, in turn, creates an important factor for the resilience of the financial system—trust in the national currency.
Trust in the som is formed based on several factors. The first is the consistency of the National Bank's actions. When the regulator clearly explains its steps, the market begins to understand the economic rules. Such predictability reduces tension, allowing entrepreneurs to plan their loans, the population to manage their savings, and banks to handle their liquidity.
As a result, the exchange rate of the som demonstrates stability even in the face of external economic shocks, and the country's international reserves have reached record levels.
The second important aspect of trust in the national currency is the stability of the banking system. People and businesses prefer to keep their money in soms when they are confident in the reliability of banks and the safety of their deposits.
Thus, the dynamics of deposits become one of the most accurate indicators of the financial climate in society. In 2025, the volume of deposits in the national currency in Kyrgyz banks increased by almost 40%, indicating that the population and entrepreneurs are increasingly choosing the som for savings, based on confidence in the stability of the financial sector.
There is also a decrease in the level of dollarization—the share of loans and deposits in foreign currency is diminishing. Economic transactions are increasingly conducted in the national currency, which enhances the resilience of the financial system to external fluctuations and reduces dependence on currency risks.
The third component is communication. When the regulator openly explains its decisions, it helps to avoid rumors and panic.
But why is trust in the national currency so important? It is the foundation of economic sovereignty, determining the willingness of citizens and businesses to conduct transactions, save, and invest domestically in soms. When key economic decisions are made independently of currency risks, the economy becomes more resilient to external challenges and maintains its independence in development. The level of trust in national money directly reflects the degree of financial independence of the state.
The entry "Head of the National Bank: Trust in the som is the foundation of economic sovereignty" was first published on K-News.
