Azernews.Az

By Vusala Abbasova

Kyrgyzstan's international reserves grew as compared to the beginning of the year to $1. 885 billion, according to the Kyrgyzstan National Bank.

The international reserves showed a descending trend last year and stood at roughly $1.875 billion in January, 2015.

Drop in the exchange rate of national currency with regard to U.S. dollar and currency interventions were the key reasons causing fall in the volume of international reserves.

The decline continued in February amounting to $1.821 billion and reached $1.750 billion in March.

The government's income in foreign currency, including foreign exchange earnings from the Kumtor and grant fundings had positive implication on the country's international reserves, which amounted to $1.876 billion in April and $1.885 billion in May.

Kyrgyzstan's National Bank, which annually reviews and approves the countries investment policy, carried out 15 currency interventions this year.

Kyrgyzstan's international reserves are kept in foreign banks.

International reserves acting as external assets helps to maintain the national currency in current unstable circumstances.

Generally, the international reserves include bonds, deposits and one-day REPO operation (purchase-sale of securities).

Earlier, the National Bank announced its readiness to purchase further gold in the domestic market in an effort to replenish international reserves.

Kyrgyzstan's gold reserves account for only 8.6 percent of the total volume of international reserves, the special drawing right is 9.5 percent and currency portfolio amounts to 81.9 percent, consisting of American, Australian, Canadian and Singapore dollars, euros, Swiss francs, British pounds, Japanese yen, the Russian ruble, Chinese yuan, the Norwegian and Swedish krona.

Kyrgyzstan has received more than $2.7 billion from the development of the Kumtor gold mine by foreign investors over 20 years. Kumtor is Kyrgyzstan’s largest industrial asset and accounts for up to 10 percent of GDP in a year.

Kyrgyzstan with 3 tons of gold ranks 86 for the volume of gold reserves in the world, according to May Statistics of World Gold Council.

---

Follow us on Twitter @AzerNewsAz