Banks and Exchange Offices Allowed to Charge Commission for "White" Dollars: Expert Commentary

Tuesday, March 25, 2025 | 18:19 Additional Income Expected from May 1 The National Bank of Kyrgyzstan has made a policy decision allowing commercial banks, exchange offices, and other financial institutions to charge a commission on transactions involving "white" dollars starting May 1. Economist Iskender Sharsheev provided expert commentary to Vesti.kg regarding the financial regulator’s decision, noting that this move will create additional income streams for currency exchange operations. Changing Policy on "White" Dollars “A few months ago, banks and commercial organizations in Egypt, Yemen, Dubai, and other countries abruptly stopped accepting ‘white’ dollars or accepted them at reduced rates. When similar issues arose here, the National Bank responded by affirming that ‘white’ dollars remain legal tender, equivalent to ‘green’ dollars. However, the latest resolution signals a change in the situation. Some reasons for this shift have been identified, while others may not yet have been disclosed,” Sharsheev explained. According to the economist, the decision to introduce a commission is driven more by political factors than economic ones. “Our citizens frequently visit countries where ‘white’ dollars are no longer accepted. This has prompted such a response. Additionally, banks need a way to manage the circulation of older dollar banknotes. Despite this, both ‘white’ and ‘green’ dollars remain valid and equal means of payment,” Sharsheev added. What Are "White" Dollars? “White” dollars refer to US banknotes issued in 2006 or earlier. Difficulties with exchanging, purchasing, and selling these banknotes arose last year in Azerbaijan, Turkey, Thailand, and other countries. Many financial experts trace the origins of the “black-and-white dollar” crisis to last fall in Turkey when the country’s currency market was flooded with counterfeit old-style $50 and $100 banknotes. In contrast, in Europe, the United States, and most other countries, no exchange rate difference is observed between older and newer banknotes. National Bank Emphasizes Fair Commission Previously, during a session of the Zhogorku Kenesh, Deputy Chairman of the National Bank Mels Attokurov clarified that commercial banks, exchange bureaus, and other financial institutions in Kyrgyzstan are obligated to accept "white" dollars. In cases of refusal, customers can report incidents to the financial regulator for corrective action. The National Bank also emphasized that the commission size for transactions involving "white" dollars should be “reasonable”, reflecting the costs associated with exporting these banknotes. Source: https://vesti.kg/zxc/item/137102-bankam-i-obmenkam-razreshili-komissiyu-za-belye-dollary-kommentarij-eksperta.html - Банкам и обменкам разрешили комиссию за «белые» доллары. Комментарий эксперта - Вести.kg - Новости Кыргызстана