Some provisions included in Law No. 74 dated April 16, 2025, will come into effect on January 1, 2027.
Key points:
Digital Som (CBDC): recognized as a legal means of payment; the right to issue and manage the platform is granted to the National Bank. Principles of cryptographic protection and rules for circulation in the digital environment are established.
Issuance of electronic money: confirmed the National Bank's ability to issue electronic money alongside cash.
Special regulatory regimes (sandbox): The National Bank has the right to introduce pilot regulations for innovative services and technologies, including operations with virtual assets, with licensing under a special regime.
Independence of the National Bank: direct prohibition on interference; cooperation with the Cabinet of Ministers is allowed, but lending to the Cabinet and primary acquisition of government securities by the National Bank is prohibited.
Payment discipline in soms: som is the only legal means of payment; advertising prices in foreign currency is prohibited (exceptions are provided for foreign economic activity and certain investment projects).
Profit and reserves: threshold levels of capital and mandatory reserves (5%/10% of monetary liabilities) are established for profit distribution to the budget; losses not covered by reserves will be compensated by the Cabinet for the restoration of the authorized capital.
Supervision and consumer rights protection: expanded powers for supervising the payment system, antimonopoly regulation, and protecting the rights of clients of banking and payment services.
Corporate governance: terms and procedures for appointing the board (7 years), annual external audit with competitive selection of the auditor, audit committee, and requirements for internal control are fixed.
Personnel requirements: employees of the National Bank must be proficient in the state language; conflicts of interest and prohibitions are established (e.g., participation in political parties, ownership of shares in supervised entities, etc.).
Currency policy and reserves: The National Bank independently manages international reserves; the freedom of capital movement is confirmed with the right to impose restrictions for security purposes and to fulfill international obligations.
Some changes adopted by Law No. 74 dated April 16, 2025, will take effect on January 1, 2027.
text of the law
(As amended by the constitutional Laws of the Kyrgyz Republic dated January 21, 2025, No. 19; January 31, 2025, No. 33; April 16, 2025, No. 74; July 10, 2025, No. 138; July 17, 2025, No. 147; July 28, 2025, No. 161; August 9, 2025, No. 194; October 31, 2025, No. 246)
Chapter 1. General provisions
Article 1. Subject of regulation of this constitutional Law
1. This constitutional Law defines the legal status, objectives, and procedures for the activities, functions, and powers, as well as guarantees of the independence of the National Bank of the Kyrgyz Republic (hereinafter referred to as the National Bank).
2. The norms contained in other legislative and regulatory legal acts concerning the subject of regulation of this constitutional Law must comply with it, and in case of conflicts, the norms of this Law shall apply, unless otherwise established in part 3 of this article.
3. The norms of this Law apply to relations arising in the special financial investment territory "Tamchy," provided this does not contradict the Law of the Kyrgyz Republic "On the special financial investment territory 'Tamchy'" and related acts.
(As amended by the constitutional Law of the Kyrgyz Republic dated July 10, 2025, No. 138)
Article 2. Legal status of the National Bank
1. The National (Central) Bank is the bank of the Kyrgyz Republic (Bank Kyrgyzstan, Kyrgyz Bank) and is owned by it.
2. The National Bank is a legal entity with an independent organizational and legal form - "Central Bank of the Kyrgyz Republic," carrying out its activities in accordance with this constitutional Law and not pursuing profit-making objectives.
3. The location of the National Bank is the city of Bishkek. The National Bank has the right to establish legal entities, branches, and representative offices both in the Kyrgyz Republic and abroad.
4. The National Bank has a seal depicting the State Emblem of the Kyrgyz Republic and its name.
5. The National Bank, as a legal entity, is responsible for its obligations with all property belonging to it.
6. The National Bank has the right to go to court to protect its own, state, and public interests.
Article 3. Purpose of the activities of the National Bank
The purpose of the activities of the National Bank is to achieve and maintain price stability through the implementation of appropriate monetary policy.
Article 4. Main tasks of the National Bank
The main tasks contributing to the achievement of the objectives of the National Bank's activities are to maintain the purchasing power of the national currency, ensure the efficiency, safety, and reliability of the banking and payment systems of the Kyrgyz Republic to promote long-term economic growth of the republic.
Article 5. Functions and powers of the National Bank
The National Bank:
1) determines and implements monetary policy;
2) develops and implements a unified currency policy;
3) owns and manages all international reserves;
4) contributes to ensuring financial stability in the Kyrgyz Republic;
5) has the exclusive right to issue banknotes of the national currency of the Kyrgyz Republic and organizes cash circulation;
6) has the right to issue (release) electronic money;
6-1) has the exclusive right to issue (release) digital som and establishes the procedure for its issuance and circulation;
6-2) organizes and ensures the functioning of the digital som platform and is the operator of the digital som platform;
7) issues permits, including special regulatory regimes, in accordance with this Law and the laws of the Kyrgyz Republic;
8) regulates and supervises the banking system of the Kyrgyz Republic, including the activities of banks and banking groups;
9) regulates and supervises non-banking financial credit organizations and other legal entities under the supervision of the National Bank;
10) supervises the payment system (oversight) and promotes the effective, reliable, and secure functioning of the payment system of the Kyrgyz Republic;
11) implements various forms and principles of banking financing, including Islamic banking and financing principles;
12) conducts banking operations in accordance with this Law;
13) regulates and monitors the activities of temporary administrators and liquidators of banks and non-banking financial credit organizations;
14) conducts antimonopoly regulation of the activities of entities under the supervision of the National Bank;
15) supervises compliance with the legislation of the Kyrgyz Republic in the field of consumer rights protection in banking and payment services;
16) implements the right of preemptive purchase of precious metals and stones in accordance with the legislation of the Kyrgyz Republic;
17) issues refined bullion bars made of precious metals;
18) acts as the lender of last resort for banks;
19) represents the interests of the Kyrgyz Republic in international organizations on monetary policy issues;
20) jointly with the state body in the field of official statistics compiles the balance of payments and determines the international investment position of the country;
21) develops and issues regulatory legal acts in accordance with this Law and the banking legislation of the Kyrgyz Republic;
22) (invalidated in accordance with the Law of the Kyrgyz Republic dated July 17, 2025, No. 147)
23) exercises other powers in accordance with the legislation of the Kyrgyz Republic.
(As amended by the constitutional Laws of the Kyrgyz Republic dated April 16, 2025, No. 74; July 17, 2025, No. 147)
Article 6. Main operations of the National Bank
1. To achieve its goals and perform its main tasks, the National Bank has the right to carry out the following operations:
1) provide loans to banks and, in exceptional cases, to non-banking organizations experiencing solvency issues;
2) buy and sell government securities on the secondary market;
3) conduct operations with foreign currency;
4) work with securities issued by the National Bank and other state institutions;
5) buy and sell precious metals and currency values;
6) accept deposits from banks and financial organizations;
7) provide funds in the national currency to international financial organizations for financing projects of the Kyrgyz Republic;
8) open accounts in financial organizations;
9) open correspondent accounts for banks;
10) act as an intermediary in transactions with international finances;
11) provide funds to ensure the financial stability of the deposit protection system;
12) import and export precious metals and currency;
13) carry out other banking operations in accordance with the legislation.
2. The National Bank implements some banking operations on a fee basis. The types of services and the amount of fees are determined by the National Bank itself.
3. The National Bank has the right to carry out the operations specified in part 1 of this article, including Islamic banking principles.
Article 7. Organization of the activities of the National Bank
1. The National Bank independently organizes its activities within its competence established by this Law and banking legislation.
2. The National Bank has the right to obtain information and documents from individuals and legal entities, as well as state bodies free of charge.
3. The National Bank must not exceed its competence established by this Law and the laws of the Kyrgyz Republic.
Article 8. Independence of the National Bank
1. The state guarantees the independence of the National Bank in carrying out its activities. Interference from state bodies is not allowed.
2. The Kyrgyz Republic is not liable for the obligations of the National Bank and vice versa.
3. The adoption of regulatory legal acts that contradict the powers of the National Bank is prohibited.
4. Employees of the National Bank are prohibited from accepting instructions from state bodies and other persons that contradict the tasks and objectives of the bank's activities.
5. The court or other authorized bodies must consult the National Bank about the consequences of their decisions for the financial system and clients of the bank before making decisions.
6. The National Bank conducts procurement of goods and services at its own expense in accordance with established procedures. The bank's subsidiaries also operate according to their own rules.
7. The audit of the bank can only be conducted within the framework of operations for servicing the accounts of the Cabinet of Ministers.
Article 9. Regulatory legal acts of the National Bank
1. The National Bank issues regulatory legal acts that are part of the banking legislation of the Kyrgyz Republic. It may take into account international standards when developing them.
2. Banking legislation regulates relations in the field of banking activities, currency policy, and the functioning of the payment system.
The norms of banking legislation do not apply to the activities of the State Development Bank of the Kyrgyz Republic.
3. The bank's regulatory acts must be registered in the State Register.
4. Acts concerning the interests of individuals and legal entities are subject to official publication.
5. The National Bank conducts a regulatory impact analysis of its regulatory acts.
6. Official clarification of regulatory acts is carried out by adopting the corresponding act.
7. Draft regulatory acts concerning banking relations must be coordinated with the National Bank.
8. Terms and definitions used in this Law are interpreted in accordance with commonly accepted meanings.
9. The National Bank develops a glossary of banking terms.
(As amended by the Law of the Kyrgyz Republic dated October 31, 2025, No. 246)
Article 10. Official publications and the National Bank's website
1. The National Bank ensures the publication of its official publications.
2. The National Bank has an official website, the order of operation of which is established by it.
Chapter 2. Capital and reserves of the National Bank
Article 11. Capital of the National Bank
1. The capital of the National Bank consists of the authorized capital, mandatory reserves, revaluation reserves of assets and liabilities, and retained earnings or losses.
2. The authorized capital of the National Bank is 4 billion soms. It cannot be alienated or pledged.
3. Changes in the amount of authorized capital are possible only through amendments to this law.
4. Mandatory reserves are formed in accordance with the law and can only be used to cover losses.
5. Retained earnings are defined as the difference between income and expenses for the financial year.
Article 12. Profit and reserves of the National Bank
1. Profit is determined based on the results of the financial year, taking into account all income and expenses.
2. Revaluation of assets is reflected in the capital on the reserve account.
3. If the revaluation reserve is negative, it is accounted for as expenses of the current period.
4. Profit is distributed as follows:
1) If the amount of capital and reserves is below 5% of liabilities, profit is transferred to the reserve;
2) If from 5% to 10%, 70% of the profit goes to the budget, the rest to the reserve;
3) If 10% or more, 100% of the profit goes to the budget.
See:
Law of the Kyrgyz Republic dated February 5, 2025, No. 34 "On the transfer of profit from the National Bank"
5. The transfer of profit occurs after the external audit and approval of the report.
6. Monetary liabilities include:
1) banknotes issued by the National Bank;
2) financial obligations on monetary regulation instruments;
3) funds of banks in accounts at the National Bank;
4) funds of the Cabinet of Ministers in accounts at the National Bank;
5) loans received by the National Bank.
7. In case of losses not covered by reserves, the Cabinet compensates them to restore capital.
Chapter 3. Monetary policy and financial stability
Article 13. Monetary policy
1. Monetary policy is defined and implemented by the National Bank, which may cooperate with the Cabinet.
2. The main directions of the policy are defined for the medium term.
3. The National Bank applies monetary regulation tools and has the right to:
1) determine interest policy;
2) issue securities;
3) establish requirements for mandatory reserves;
4) conduct credit policy;
5) regulate the volume of money supply;
6) apply other instruments.
Article 14. Mandatory reserves
1. The National Bank establishes requirements for mandatory reserves for banks and financial organizations.
2. The size and procedure for calculating reserves are determined by the National Bank.
3. Penalties established by the National Bank are imposed for non-compliance with reserve requirements.
Article 15. Securities issued by the National Bank
The National Bank has the right to issue securities to implement its monetary policy.
Article 16. Monetary operations of the National Bank
The National Bank has the right to carry out the following operations:
1) purchase and sale of government securities;
2) purchase and sale of securities guaranteed by the National Bank;
3) operations with foreign currency;
4) provision of loans to banks;
5) other methods of liquidity regulation.
Article 17. Loans provided to banks
The National Bank has the right to provide loans to banks on a paid and repayable basis with collateral.
Article 18. Ensuring financial stability
The National Bank, together with the Cabinet, implements measures to ensure financial stability, including macroprudential regulation. State bodies are obliged to provide necessary information.
Chapter 4. National currency of the Kyrgyz Republic
1. The monetary unit is the som, consisting of 100 tyiyns.
2. Cash is issued in the form of banknotes and coins.
3. The National Bank establishes the official exchange rate of the som.
Article 20. Issuance of banknotes
The National Bank has the exclusive right to issue and withdraw banknotes.
Article 21. Means of payment
The som is the only legal means of payment in Kyrgyzstan, mandatory for acceptance without restrictions. Prices for goods must be indicated in soms.
2. Advertising prices in foreign currency is prohibited.
3. Unjustified refusal to accept soms is subject to penalties.
Article 22. Organization of cash circulation
The National Bank organizes cash circulation, including forecasting the needs for the issuance of banknotes.
Chapter 4-1. Digital som of the Kyrgyz Republic
(Chapter
as amended by the Law of the Kyrgyz Republic dated April 16, 2025, No. 74)
1. Digital som is the national currency in digital form, a legal means of payment.
2. It is issued on a specialized platform.
3. The operator of the platform is the National Bank.
4. The platform is a technological infrastructure for accounting and circulation of digital som.
(As amended by the Law of the Kyrgyz Republic dated April 16, 2025, No. 74)
1. The National Bank has the exclusive right to issue digital som.
2. Digital som is backed by all the bank's assets.
3. Withdrawal of digital som from circulation is the exclusive right of the National Bank.
(As amended by the Law of the Kyrgyz Republic dated April 16, 2025, No. 74)
The National Bank organizes the circulation of digital som:
1) forecasts the needs for its issuance;
2) establishes requirements for storage and protection;
3) develops rules for banks and other participants;
4) determines signs of cryptographic protection;
5) performs other functions in accordance with the legislation.
(As amended by the Law of the Kyrgyz Republic dated April 16, 2025, No. 74)
Chapter 5. Currency policy in the Kyrgyz Republic
Article 23. Currency policy
The National Bank implements a unified currency policy in the country.
Article 24. Currency operations of the National Bank
The National Bank conducts currency operations, including operations with precious metals and foreign currency.
Article 25. Exchange rate
The official exchange rate is determined by the National Bank based on market rates.
Article 26. Operations in foreign currency
Payments in foreign currency are carried out in accordance with the procedure established by the National Bank.
Article 27. Movement of foreign currency
Movement of foreign currency is not restricted, provided it is declared.
Article 28. Freedom of capital movement
Capital transfers are not restricted but may be limited for security purposes.
Article 29. Registration of accounts abroad
Legal entities are required to register accounts abroad with the National Bank.
Chapter 6. Payment system of the Kyrgyz Republic
Article 30. Payment system
The payment system is an interconnected system that ensures monetary circulation. Regulation of the system is carried out based on a special law.
Article 31. Cooperation with state and foreign bodies
The National Bank interacts with supervisory authorities to enhance the effectiveness of supervision.
Chapter 7. Foreign economic activity and international reserves
Article 32. Interaction with international organizations
The National Bank represents the interests of the Kyrgyz Republic in international matters.
Article 33. International reserves
The National Bank holds international reserves in accordance with its objectives.
Article 34. Interaction with the Cabinet
The National Bank and the Cabinet interact within their competence.
Article 35. Prohibition on lending to the Cabinet
The National Bank is prohibited from providing loans to the Cabinet of Ministers.
Article 36. Operations with government securities
The National Bank has the right to buy and sell government securities on the secondary market.
Article 37. Servicing accounts of the Cabinet
The National Bank carries out operations for servicing the accounts of the Cabinet.
Article 38. Consultations of the National Bank
The National Bank consults state bodies on issues within its competence.
Article 39. Compiling the balance of payments
The National Bank, together with state bodies, compiles the balance of payments of the country.
Chapter 9. Relations with banks and other legal entities
Article 40. Authorized regulatory body
The National Bank conducts licensing and supervision of the banking system.
Article 41. Economic standards and requirements
The National Bank establishes minimum capital requirements and economic standards for banks.
Article 42. Consumer rights protection
The National Bank determines requirements for the protection of consumer rights in banking services.
Article 43. Powers of the National Bank for supervision
The National Bank conducts external oversight and inspection.
Article 44. Pre-trial appeal of decisions of the National Bank
Pre-trial appeal is mandatory.
Article 45. Appeal to the court
Decisions of the National Bank can be appealed in court.
Article 46. Interaction with state bodies
The National Bank and other bodies must cooperate for effective supervision.
Article 47. Cooperation with foreign bodies
The National Bank enters into cooperation agreements with foreign bodies.
Chapter 10. Special regulatory regimes
Article 48. Temporary regulation
The National Bank may establish pilot regulations for testing services.
Article 49. Licenses in special regimes
The National Bank issues licenses to participants in special regimes.
Chapter 11. Reporting, audit, and budget
Article 50. Reporting of the National Bank
The Chairman presents an annual report on the activities of the National Bank.
Article 51. Financial reporting
The National Bank maintains accounting and reporting in accordance with international standards.
Article 52. External audit
External audit is conducted annually in accordance with international standards.
Article 53. Internal control system
The National Bank must have an internal control system.
Article 54. Audit committee
An Audit Committee operates in the National Bank to oversee the internal control system.
Article 55. Internal audit
Internal audit is conducted on a continuous basis.
Article 56. Budget of the National Bank
The budget is approved by the Board no later than December 31.
Chapter 12. Organization of management of the National Bank
Article 57. Management bodies
The management bodies are the Board and the Chairman.
Article 58. Requirements for positions
Persons appointed to positions must have the necessary qualifications.
Article 59. Restrictions for management
Management cannot participate in political parties or own shares.
Article 60. Appointment procedure
The Chairman is appointed by the Jogorku Kenesh for a term of seven years.
Article 61. Grounds for dismissal
Dismissal is possible by personal application or due to health reasons.
Article 62. Remuneration
Salaries are set by the President taking into account competitiveness.
Article 63. Organization of the Board's work
The Board holds meetings at least once a month.
Article 64. Powers of the Board
The Board has the right to consider any issues within its competence.
Article 65. Powers of the Chairman
The Chairman organizes the work of the Board and signs acts.
Chapter 13. Employees of the National Bank
Article 66. Employees
All employees of the National Bank are its officials.
Article 67. Social protection
The National Bank organizes insurance and the issuance of housing loans.
Article 68. Restrictions for employees
Employees are prohibited from holding positions in other organizations.
Article 69. Protection of confidential information
The National Bank is obliged to protect confidential information.
Article 70. Legal protection of employees
Employees are not liable for civil liability for actions within their duties.
Chapter 14. Property rights and security
Article 71. Property of the National Bank
The National Bank owns its property and cannot be deprived of it.
Article 72. Operations with subsidiaries
The National Bank has the right to provide loans to subsidiaries.
Article 73. Taxation and duties
The National Bank is subject to taxation in accordance with the legislation.
Article 74. Final provisions
This law comes into effect from the moment of official publication.
Published in the newspaper "Erkin Too" on August 17, 2022, No. 72-74
2. The increase of capital to 4 billion soms is carried out at the expense of reserves.
3. Persons elected before the law comes into effect retain their powers.
4. Recognition of lost laws regarding changes in legislation.
5. The Cabinet must bring the legislation in line with this law within six months.
6. The National Bank is also obliged to align its acts accordingly.
(As amended by the Law of the Kyrgyz Republic dated July 17, 2025, No. 147)
President of the Kyrgyz Republic
S. Japarov
Adopted by the Jogorku Kenesh of the Kyrgyz Republic
June 30, 2022
