BISHKEK, Kyrgyzstan, August 28. Kyrgyzstan is considering a proposal to conduct all domestic trade exclusively in the national currency, according to a document prepared by members of the Kyrgyz Parliament, Trend reports.
"The effective development of the country's economy is largely determined by the state of monetary circulation. One of the key conditions for the stable functioning of the monetary system is legislative regulation of monetary transactions," the justification paper for the proposal states.
The document notes that internal trade in Kyrgyzstan, including transactions related to real estate, motor vehicles, loans, and travel services, is currently conducted in foreign currencies, which exerts pressure on the national currency.
The credit system and installment purchases of property create difficulties for citizens in repaying debts, particularly when there are sharp fluctuations or artificial increases in foreign currency exchange rates.
Under the proposed law, entities with income and expenses in foreign currencies would still be permitted to conduct export and import-related transactions in foreign currencies.