Azerbaijan, Baku, Aug. 22 /Trend, V.Zhavoronkova, N.Ismayilova/
The National Bank of Kyrgyzstan continues monitoring the situation and conducting appropriate actions to further ensure its stability in the domestic financial market through the existing mechanisms and instruments, Deputy Chairman of the Bank's Board Zair Chokoev told Trend.
"The exchange rate of national currency in Kyrgyzstan is composed according to the selected floating exchange rate regime, which involves the formation of the exchange rate through market mechanisms, that is based on supply and demand for foreign currency, said Chokoev. As known, the U.S. threat of default has been temporarily resolved, but the National Bank constantly monitors the situation in external and domestic financial markets. "
According to him, the main tool of the National Bank to stabilize the situation in the domestic market is currency intervention to in order to equalize supply and demand imbalances.
"In addition, if necessary, to normalize the situation in the domestic market and in accordance with the objectives of monetary policy, the National Bank can use a large set of instruments such as swaps and related operations with cash foreign currency," he said.