The Dollar Falls Against the Som: Expert Explains the Reasons Behind the Decline

March 27, 2025 After months of stability, the US dollar has recently shown fluctuations and a slight decline against the Kyrgyz som. To understand the reasons for this drop, a 24.kg journalist consulted economic expert Iskender Sharsheev. National Bank’s Role and Excess Currency in the Market “The recent decline in the US dollar against the Kyrgyz som, observed over the past week, is most likely due to the actions of the National Bank of the Kyrgyz Republic (NBKR), combined with an excess of foreign currency in the domestic market,” Sharsheev explained. For Kyrgyzstan, a small and open economy, the currency market is highly sensitive to interventions by the National Bank. According to Sharsheev, the regulator’s efforts to maintain the stability of the national currency are the primary driver behind the recent decline in the dollar exchange rate. “The sustained drop in the dollar over several days suggests targeted pressure, likely exerted by the National Bank,” he emphasized. Influence of Foreign Exchange Inflows Sharsheev acknowledged that an influx of foreign exchange earnings, such as remittances from labor migrants and proceeds from export operations, may have created favorable conditions for strengthening the som. Other Contributing Factors The expert also pointed out that external factors, such as the strengthening of the Russian ruble and global dollar dynamics, play a role in shaping the exchange rate. However, he stressed that in the short term, manual regulation by the NBKR remains the most likely and significant factor influencing the current situation. Refference: https://24.kg/ekonomika/324130_dollar_podeshevel_ksomu_ekspert_otom_pochemu_oslabla_amerikanskaya_valyuta/ #DollarDecline, #KyrgyzSom, #ExchangeRate, #NationalBankKyrgyzstan, #CurrencyMarket, #IskenderSharsheev, #ForexKyrgyzstan, #USDKGS, #FinancialAnalysis, #CurrencyFluctuations, #SomStrength, #DollarWeakening, #NBKR, #ForeignExchange, #EconomicExpert, #RemittancesImpact, #ExportEarnings, #MonetaryPolicy, #RubleInfluence, #GlobalDollarTrends, #KyrgyzstanEconomy, #CurrencyIntervention, #FinancialStability, #DollarTrend, #ForexNews, #SomExchangeRate