The National Bank, having raised the key interest rate to 12% at the end of February, has outlined its position within the framework of monetary policy. This decision not only reflects the current state of inflation risks, internal demand dynamics, and the external economic situation but also demonstrates the regulator's readiness to respond promptly to changes in the economy.
Such measures set benchmarks for the financial sector, businesses, and citizens, contribute to a better understanding of the National Bank's actions, and strengthen confidence in maintaining price stability. This also helps reinforce one of the most important factors for the resilience of the financial system—trust in the national currency.
Trust in the som is formed based on several factors. The main one is the consistency of the National Bank's actions. When its decisions are logically explained and correspond to the economic situation, it allows the market to understand the rules of the game and reduces tension levels. Thus, entrepreneurs can plan loans, and citizens can plan savings, enabling banks to manage liquidity.
It is precisely because of this that the exchange rate of the som remains relatively stable, even when external conditions become unstable, and the country's international reserves reach record levels.
Moreover, an important aspect of trust in the national currency is the stability of the banking system. Citizens and businesses are willing to hold their funds in soms when they are confident in the reliability of banks and the safety of their assets.
The dynamics of deposits are one of the most accurate indicators of financial sentiment in society. In 2025, the volume of deposits in soms in Kyrgyz banks increased by almost 40%, indicating a growing interest among the population and entrepreneurs in the som as a savings instrument based on trust in the financial system.
At the same time, there is a decrease in the level of dollarization—the share of loans and deposits in foreign currency is diminishing. Economic transactions are increasingly taking place in the national currency, which enhances the resilience of the financial system to external fluctuations and reduces dependence on currency risks.
The third important aspect is open communication. When the regulator explains its decisions, it reduces the space for rumors and panic reactions.
But why is trust in the national currency so important? It serves as the foundation of economic sovereignty, determining the willingness of citizens and businesses to conduct transactions, save, and invest in the country in their own currency. When making key economic decisions without considering currency risks, the economy becomes more resilient to external factors and maintains its independence in development. The level of trust in the national currency directly reflects the degree of financial independence of the state.
The post Head of the National Bank: Trust in the som is the foundation of economic sovereignty first appeared on K-News.
