Since start of 2014, the official exchange rate of the U.S. dollar against Kyrgyz som has grown by 1.6% from 49.1984 som for $1 to 49.9885 som by January 18 (in the same period of 2013 the growth made 0.1%), reported Tazabek with reference to the National Bank. The main reasons of increase of the US dollar-Kyrgyz som exchange rate is a high demand for the foreign currency as a seasonal factor and decline in supply of foreign currency at the foreign currency market. The demand is caused by the necessity to pay under the import contracts, particularly, fuel, car, metal and other consumer goods contracts, the National Bank explained. The bulk of supply of foreign currency is traditionally formed by export revenues and workers' remittances. Export of goods for 11 months of 2013 amounted to $1.824 billion and grew by 6.8% comparing to the same period of 2012. Net profit of remittances for 11 months of 2013 totaled $1.733 billion , which is 7% growth compared to 2012. Import of goods for the given period made $4.959 billion , which is 11.1% increase compared to 2012. "Imported products require payments in foreign currency and this is why exerts pressure on exchange rate from the demand," the National Bank underscored. The National Bank said the overall supply of foreign currency does not meet the growing demand for foreign currency 1.4-fold. "Moreover, unequal implementation of the budget by the Kyrgyz government, with most of expenditures occurring by the year-end, also influences on the currency market. Monetary base in December 2013 increased for 5.3%, while the average monthly growth of monetary base in 2013 made 1.1%," the National Bank went on saying. Comparing to US dollar exchange rate in Kyrgyzstan with other countries, in Russia the ruble became cheaper for 7.8%, in Kazakhstan tenge went down by 2.2%. The growth of US dollar-Kyrgyz som exchange rate in 2012 made 3.9%. "The current increase of US dollar exchange rate at the domestic foreign currency market is explained by seasonal factor, imbalance of trade and changes in inflow of foreign currency into the country. The experience of previous periods showed that usually at the beginning and end of year, the U.S. dollar grows versus som. With increase in supply of foreign currency, the U.S. dollar exchange rate versus som goes down," the National Bank concluded.
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