A temporary procedure for conducting operations with the Kazakh tenge by commercial banks, exchange offices, microfinance and microcredit companies has been introduced in Kyrgyzstan. This decision was taken by the Board of the National Bank.

It was done to ensure the economic security of Kyrgyzstan and stabilize the situation in the domestic foreign exchange market.

According to the decision of the National Bank, from March 19, commercial banks, exchange offices, microfinance organizations licensed by the National Bank of the Kyrgyz Republic for the right to conduct exchange operations with foreign currency in cash must set the buying rate of the Kazakh tenge against the Kyrgyz som taking into account the risk weighting coefficient in the amount of not more than 70 percent of the official exchange rate of the Kazakh tenge against the Kyrgyz som, set by the main financial regulator.

«Commercial banks and microfinance companies must comply with the open currency position limit for the Kazakh tenge in the amount of 1 percent of the net total / equity capital in the manner established by the regulatory legal acts of the National Bank,» the statement says.

The current procedure for setting the official exchange rate of the Kazakh tenge against the Kyrgyz som by the National Bank remains unchanged.

«Introduction of the temporary order is aimed at minimizing the negative impact of foreign currency volatility on the foreign exchange market, as well as in order to comply with the necessary requirements and obligations when carrying out foreign exchange transactions,» the National Bank of the Kyrgyz Republic concluded.