RESOLUTION OF BOARD OF NATIONAL BANK OF THE KYRGYZ REPUBLIC

of March 18, 2022 No. 2022-P-09/16-1-(BS)

About temporary procedure on carrying out transactions with the Kazakh tenge commercial banks, exchange bureaus, the microfinance and microcredit companies of the Kyrgyz Republic

For the purpose of ensuring economic safety of the Kyrgyz Republic and stabilization of situation in the domestic foreign exchange market, being guided by Articles 17, of 36, 68 and 138 Laws of the Kyrgyz Republic "About National Bank of the Kyrgyz Republic, banks and banking activity", the Board of National Bank of the Kyrgyz Republic decides:

1. To the commercial banks, exchange bureaus, the microfinance and microcredit companies of the Kyrgyz Republic having the license of National Bank of the Kyrgyz Republic for the right of carrying out exchange transactions with cash foreign currency, since March 19, 2022 to establish the buying rate of the Kazakh tenge in relation to the Kyrgyz som taking into account risk weighting coefficient in the amount of no more than 70 percent from the official rate of the Kazakh tenge in relation to the Kyrgyz som established by National Bank of the Kyrgyz Republic.

1-1. The requirements for establishment of buying rate of the Kazakh tenge established in Item 1 of this resolution do not extend to transactions of commercial banks of the Kyrgyz Republic on purchase of non-cash Kazakh tenge from persons who are engaged in commodity export, works and services on the territory of the Republic of Kazakhstan based on export contracts. The exchange rate of the Kazakh tenge in relation to som is freely determined (on contractual basis) between the commercial bank and persons who are engaged in commodity export, works and services on the territory of the Republic of Kazakhstan based on export contracts.

2. For commercial banks to establish value of limit of open foreign exchange position (K4.1) established in Item 5.1 of the Provision "About the Economic Standard Rates and Requirements Obligatory for Accomplishment of the Kyrgyz Republic by Commercial Banks" approved by the resolution of Board of National Bank of the Kyrgyz Republic of July 21, 2004 No. 18/1, and also in Items 3.1.1 and 3.1.2 of the Instruction "About procedure for observance of limits of open foreign exchange position and open line item in precious metals commercial banks in the territory of the Kyrgyz Republic", the Kyrgyz Republic approved by the resolution of Board of National Bank of December 29, 2004 No. 36/13, for the Kazakh tenges in the amount of 1 percent from the net total capital of bank.

3. For microfinance companies to establish the value of limit of open foreign exchange position established in the subitem 1 of Item 10 of the Instruction "About procedure for observance of limits of open foreign exchange positions by microfinance companies", the Kyrgyz Republic approved by the resolution of Board of National Bank of May 30, 2014 No. 24/8, for the Kazakh tenges in the amount of 1 percent from equity of microfinance company.

4. This resolution becomes effective from the date of official publication and is effective before adoption of the relevant decision of Board of National Bank.

5. To legal management:

- publish this resolution on the official website of National Bank of the Kyrgyz Republic;

- after official publication to send this resolution to the Ministry of Justice of the Kyrgyz Republic for entering into the State register of regulatory legal acts of the Kyrgyz Republic.

6. To managements of banking supervision 1 and 2, to management of supervision of non-bank financial credit institutions to bring this resolution to the attention of the commercial banks, exchange bureaus, microfinance companies and microcredit companies of the Kyrgyz Republic having the license of National Bank of the Kyrgyz Republic for the right of carrying out exchange transactions with cash foreign currency, structural divisions, regional managements and representative office of National Bank in Batken Province.

7. To impose control of execution of this resolution on the board member of the National Bank of the Kyrgyz Republic supervising banking supervision.

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