Kyrgyzstan eyes banning foreign currencies in domestic transactions
Members of Kyrgyzstan’s Parliament, the Jogorku Kenesh, have introduced a draft bill aimed at designating the national currency, the som, as the exclusive means of payment within the country.
The draft bill establishes that the som must be used in all domestic transactions, except for those related to export and import. It is seen as a step to reduce Kyrgyzstan’s dependence on foreign currency, and stabilize the country’s financial system, News.Az reports citing foreign media.The draft law emphasizes that using foreign currencies — especially in real estate, vehicle purchasing, and lending transactions — creates additional risks for citizens. Sharp fluctuations in exchange rates make it more difficult for borrowers to repay debts.
Similar measures have also been taken in Turkmenistan, where using foreign currency for everyday payments is almost entirely outlawed. Iraq has banned all domestic transactions to strengthen and stabilize the local currency, the Iraqi dinar.
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