The Currency of Kyrgyzstan
The world around us is changing rapidly: the planet's climate is changing, entire countries appear and disappear, political systems and ideologies change, and human thinking evolves as technologies improve. We live at the turn of the millennium in the center of the greatest technological revolution in human history, primarily associated with the rapid development of digital technologies, computers, and communication tools. The further development of human civilization is already unthinkable without nanotechnologies, superconductors, the internet, mobile phones, and cashless electronic payment systems. Payments using plastic cards in stores, gas stations, and post offices have become commonplace, and the convenience of purchasing goods online has been duly appreciated. Many have even begun to predict the imminent disappearance of cash, to be replaced by electronic money. However, despite such rapid development of cashless payments, even in the most developed countries, cash has not disappeared; on the contrary, its quantity increases every year, and its quality improves.
Our country has found itself at the epicenter of historical changes. After the collapse of the Soviet Union and the socialist system, the former Soviet republics were forced to independently determine the further paths of development for their countries, including addressing the extremely pressing issue of independent cash circulation.
The Baltic republics replaced the Soviet rubles earlier than anyone else: in 1991, Lithuania introduced talons instead of Soviet rubles (1:1), and in 1993, litas instead of talons (1:100); in 1992, Latvia introduced its rubles instead of Soviet rubles (1:1), and on March 1, 1993, replaced rubles with lats (1:200); Estonia introduced kroons on June 20, 1992, at a ratio of 1:10.
Kyrgyzstan introduced its own national currency on May 10, 1993. Following Kyrgyzstan, Kazakhstan, Uzbekistan, and other Commonwealth countries introduced their national currencies.
Thus, on May 10, 1993, at 4 a.m., Kyrgyzstan had its own national currency – the som. On May 10, 2008, the national currency of the Kyrgyz Republic will turn 15 years old. This is indeed a significant date in the recent history of Kyrgyzstan.
The introduction of its national currency became a turning point in understanding sovereignty and independence, in building its own course of development in real time and space. During this challenging period of establishing national economies in the Commonwealth countries, it was necessary to make crucial political and economic decisions on the fly amid the collapse of the centralized socialist system.
The introduction of the national currency allowed for the establishment of effective cash circulation in the republic, systematized the processes of cash disbursement for timely payment of wages, pensions, and benefits, and limited the outflow of money from the republic. It became possible to strictly control the total amount of money in circulation to meet the needs of the republic and prevent inflation growth.
It should be noted that the national currency was created according to a phased strategy:
· In 1993, the first Kyrgyz banknotes appeared - transitional period money (1, 10, 50 tyiyn, 1, 5, 20 som). Starting in 1995, a method of gradually withdrawing the first issue banknotes from circulation was applied (excess cash from commercial banks containing first issue banknotes was exchanged for second issue banknotes). Currently, the first issue banknotes have almost completely been withdrawn from circulation.
· In 1994, banknotes from the stabilization period were issued, which adhered to the principle of a reasonable combination of low price and protective features.
· In 1997, the first banknotes of the next series, featuring a high level of protection – 5 and 10 som, were introduced.
· In 2000, banknotes of 1 som with improved features were introduced, and banknotes of 200, 500, and 1000 som were released into circulation. The introduction of high denomination banknotes allowed for timely meeting the demand of the republic's economy for the national currency and significantly reduced the costs of producing banknotes and processing them by banking institutions.
The next stage in the development of the national currency was the introduction of metal coins into circulation starting January 1, 2008: a collectible coin with a denomination of 1 tyiyn and circulating coins with denominations of 10, 50 tyiyn, 1, 3, and 5 som. The availability of small change coins will facilitate easy and convenient transactions during trade operations.
Historical and cultural milestones in the recent history of Kyrgyzstan are also marked by the issuance of commemorative collectible coins made of gold and silver. The anniversary gold coins "Manas – 1000" and "Osh -3000", silver coins "Manas – 1000", "Khan-Tengri", "Argali", "Edelweiss", "Genesis of Kyrgyz statehood", "10 years of the national currency", "SCO", and a series of silver coins "The Great Silk Road" represent Kyrgyzstan at the international level and enjoy well-deserved success among numismatists worldwide. Tourists gladly purchase them as souvenirs to remember our beautiful country.
The som – the national currency of sovereign Kyrgyzstan – has made a significant contribution to the economic, political, and cultural life of the Kyrgyz Republic and has taken its unique and worthy place among the currencies of the countries of the world and in the rich cultural heritage of the peoples who have inhabited the sacred land of Kyrgyzstan since ancient times to the present day.
Stages of Development of the National Currency
Monetary unit: som = 100 tyiyn
Issuing bank – National Bank of the Kyrgyz Republic
Date of introduction into circulation: May 10, 1993
Currently, the nominal series is represented by:
coins: 10, 50 tyiyn, 1, 3, 5, 10 som
banknotes: 10, 50 tyiyn, 1, 5, 10, 20, 50, 100, 200, 500, 1000, 5000 som
Banknotes of the 1993 Series (First Issue)
The first banknotes with denominations of 1, 5, 20 som and 1, 10, 50 tyiyn, serving as change coins, were issued in the spring of 1993.
Banknotes of the 1994-1995 Series (Second Issue)
In 1994-1995, the second emission of banknotes followed. The so-called banknotes "of the period of establishing trust of the population in the national currency" were issued into circulation, which were more reliably protected against counterfeiting than the first issue banknotes.
The banknotes of the 1993 series were gradually withdrawn from circulation and replaced by the 1, 5, 10, 20, 50, 100 som banknotes of the 1994-1995 series.
Banknotes of the 1997, 2000, 2002, 2004, 2005 Series (Third Issue)
Since 1997, the third stage of the introduction of the national currency began. Modified banknotes with denominations of 1, 5, 10, 20, 50, 100 som were gradually introduced into circulation, featuring improved protective elements compared to the previous issue banknotes. In 2000, high denomination banknotes – 200, 500, 1000 som were issued into circulation.
Banknotes of the 2009-2010 Series (Fourth Issue)
The fourth series of national currency banknotes was opened by the 5,000 som banknote, issued into circulation in 2009. Then, gradually, modified banknotes of 20, 50, 100, 200, 500, and 1000 som were introduced into circulation.
The banknotes of the fourth series have an original design and improved protective elements.
Coins of the 2008-2009 Series
In 2008-2009, circulating coins with denominations of 10, 50 tyiyn and 1, 3, 5, 10 som were introduced into circulation.
All banknotes and coins of the national currency have the status of official means of payment on the territory of the Kyrgyz Republic and must be accepted as a means of payment regardless of the year of issue.
Source: NBKR
National Currency
