Expert explains growing exchange rates of US dollar, Euro with possible artificial manipulations of external players willing to acquire assets at lower price
The growth of exchange rate of US dollar and Euro against Kyrgyz som can be possibly caused by artificial manipulations of external players, Sergey Ponomarev, Head of the Association of Markets, Trade and Services Enterprises, told Tazabek. "That is, they aim to devalue the currency of certain countries and then buy the assets that went down in value for expensive dollars and euros. Then they may even up dollar and euro, as in such expensive value it will not be beneficial for players from U.S. and EU and other stakeholders, since imbalance between export and import will occur that may cause stop of production," the expert suggested. This process may take up to half a year, however, the real state of affairs will be known later. Now everything is at the level of assumptions, he added. In comments about impact of fall of tenge exchange rate on the market of Kyrgyzstan, Sergey Ponomarev said when economic globalization is ongoing, all regional economic processes and closely interrelated. Mr. Ponomarev described the actions of the National Bank of Kyrgyzstan, which has made foreign currency intervention, as "right and timely." "If the Bank hasn't poured in dollars, panic would start, its actions were very important and necessary," Sergey Ponomarev added. Businessmen from Kyrgyzstan are closely connected with their colleagues in Kazakhstan, especially in border areas (Jambyl and Almaty regions), while all settlements done in US dollars. This means that such products as flour, grain, cooking oil supplied from Kazakhstan to Kyrgyzstan will automatically go up in price, the expert suggested. "This may lead to price hikes in Kyrgyzstan. We have the price hiking tendency since January already, additional increase of prices from Kazakhstan will cause even higher prices and inflation," he said. Unlike Kazakhstan, the Kyrgyz Republic has no a rigid corridor policy of the National Bank. Exchange rates of US dollar, som and other currencies are floating. So, devaluation of som is out of question. However, financial speculations may rise, Mr. Ponomarev assumed and added the respective agencies should adopt measures to prevent speculations.