The Republic of Kyrgyzstan located in central Asia obtained independence in 1991 from the former Soviet Union. Kyrgyzstan, a poor landlocked nation is currently home to a population of 5.2 million of which upwards of 40 percent live below the poverty line (2004). Kyrgyzstan is also home to spectacular scenery including Mt. Pik Pobedy rising 24,400 feet, one of the world’s tallest mountains.
Economic Statistics
Total GDP as measured by purchasing power parity stands at $10.65 billion USD (2005) with corresponding GDP/Capita at $2,100 USD. Market GDP stands at $2.14 billion USD (2005). GDP growth rates include year 2005 at 2 percent, 2006 projected at 5 percent, 2007 at 5.5 percent. Inflation quotes have year 2005 at 5.2 percent, 2006 estimated at 5.7 percent, 2007 at 4.5 percent. Other inflation quotes of interest include year 1999 at 40 percent, 1997 at 13 percent. The current account is in deficit at $134 million USD (2005) with the trade component showing a deficit of $178 million USD. Fiscal deficit for 2005 down to 1 percent of GDP. External debt at $2.4 billion USD (2004). Unemployment at 18 percent (2004). Reserves including gold came in at $647 million USD (June 2006).
CURRENCY: ISO Symbol ‘KGS’, Kyrgyzstani som. At time of review on August 10, 2006, the Krygyzstani som had an exchange valuation of 39.85 KGS to the US-dollar (USD) and/or 51.159 to the Euroland euro (EUR). The currency regime follows that of a float. The som has since stabilized from the mass devaluation of the 1990’s where the value collapsed to one/tenth its original value, that is from 4 to approximate 46 KGS to the USD in 6 years from 1993-1999. Counterfeiting is prevalent and is split evenly between the KGS and the USD.
CURRENCY HISTORY: the som was introduced as national currency for Kyrgyzstan in May 10, 1993 replacing the then former Russian ruble at an exchange rate of 200 rubles to 1 som. In May 1995, the som became fully convertible. Historical exchange quotes include year 2005 at 41.01 KGS to the USD, 2004 at 42.65, 2003 at 43.64, 2002 at 46.93, 2001 at 48.37, 2000 at 47.7, 1999 at 39, 1998 at 20.83, 1997 at 17.36, 1995 at 11.2 (December 2005), 1994 at 10.6 (December 2005) and 1993 at 4.
CURRENCY FORECAST: growing pains with democracy, optimistic the country will modernize and develop a fully functioning legal system to the benefit of business and wealth creation. Kyrgyzstan to be a beneficiary from the global commodities boom as the country is rich in a wide array of natural resources from natural gas, gold, uranium, rare earth metals, electricity surplus, agricultural products - tobacco, wool, cotton, etc.
For a detailed currency opinion as presented by BankINTRO.com, please click the banner below and send us your request. A company representative will be happy to provide a quote for currency consulting services.
