• KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
  • KGS/USD = 0.01144 0%
  • KZT/USD = 0.00193 -0%
  • TJS/USD = 0.10838 -0.09%
  • UZS/USD = 0.00008 0%
  • TMT/USD = 0.28490 0%
10 December 2025

Dollarization in Kyrgyzstan Declines as Banks Report Lower Profits

The National Bank of the Kyrgyz Republic (NBKR) has reported a continued decline in dollarization within the country’s banking sector, reflecting growing public confidence in the national currency.

As of early September, the share of foreign currency loans in the banking sector dropped to 18%, down from over 20% at the start of the year. The decrease is even more pronounced in the deposit base: the share of foreign currency deposits fell from 43% to 38% during the first eight months of 2025. NBKR officials say households are increasingly moving away from the U.S. dollar and other foreign currencies as trust in the national currency, the som, strengthens.

Despite the reduction in foreign currency lending and deposits, the sector overall continues to grow. Since the beginning of the year, deposits in Kyrgyz soms have increased by 21%, reaching 717.6 billion KGS ($8.2 billion). The total loan portfolio rose by 26% to 430 billion KGS ($4.9 billion).

However, commercial banks are reporting weaker profitability. Financial statements for January to August 2025 indicate a steep drop in earnings from foreign exchange operations. During this period, turnover in foreign currencies fell by more than 2 billion KGS ($23 million), totaling 18 billion KGS ($206.5 million).

Analysts note that the current environment contrasts sharply with conditions just a few years ago. After the onset of Russia’s war in Ukraine in 2022 and the introduction of Western sanctions, Kyrgyzstan’s currency market experienced significant volatility. Banks then benefited from heightened demand for exchange operations. But with today’s more stable ruble and reduced fluctuations, those profits have diminished.

Just five years ago, the National Bank was actively urging citizens to use the som more broadly. At the time, dollar-denominated loans were more expensive, yet remained popular among Kyrgyz borrowers. Now, the trend has reversed, with households increasingly choosing the national currency over foreign alternatives.

Uzbekistan Advances Draft Law to Introduce Islamic Banking System

Uzbekistan has taken a major step toward diversifying its financial sector with the approval of a draft law on Islamic banking in its first reading. Lawmakers in the legislative chamber of the parliament, the Oliy Majlis, debated the bill during a session held on September 16.

The initiative is part of the government’s broader effort to expand access to financial services for citizens and businesses, attract foreign investment, and create new mechanisms for economic support. To this end, the draft proposes amendments to the Tax Code, Civil Code, and eight other laws.

The bill formally introduces into legislation the concepts of Islamic banks, financial operations, standards, and investment deposits. It also outlines a licensing regime allowing for the establishment of either fully-fledged Islamic banks or Islamic “windows” within existing conventional banks. Permitted financial instruments will include murabaha, mudaraba, musharaka, wakala, and salam, contracts widely used in Islamic finance.

Abrorkhoja Turdaliev, Deputy Chairman of the Central Bank, stated that the reforms go beyond removing legal barriers and are aimed at building the institutional foundations of Islamic finance. He highlighted the need to establish dedicated councils, audit bodies, and accounting systems to ensure compliance with Islamic financial principles. The bill also includes provisions for a special tax regime tailored to Islamic finance operations.

Turdaliev noted that Islamic banking prohibits the charging of interest, the financing of activities forbidden under Islamic law, and excessive uncertainty in contracts. Instead, it emphasizes partnership and risk-sharing. To support this model, the draft law would eliminate restrictions that currently prevent banks from directly participating in trade or acquiring equity stakes in companies.

Drawing on international experience from Malaysia, Turkey, the UAE, and neighboring countries, the proposed legal framework seeks to build a modern infrastructure for Islamic finance in Uzbekistan. “This law will provide legal grounds for establishing Islamic banks, Islamic windows, and microfinance institutions, thereby expanding access to alternative financial services and introducing new tools to support business,” Turdaliev said.

Kazakh Businessman Almaz Zaripov Detained in Bishkek

The State Committee for National Security of Kyrgyzstan (SCNS) has confirmed the detention of Kazakh citizen Almaz Zaripov, president of the Agrarian and Industrial Union of Kazakhstan, in Bishkek. The arrest, which occurred at the end of August, followed a public appeal by Zaripov’s wife to President Kassym-Jomart Tokayev, which garnered widespread attention on social media.

According to Kyrgyz authorities, the case stems from a March 2025 complaint by two Bishkek residents. The complainants allege that a 51-year-old man offered them a “lucrative business” opportunity involving grain imports from Kazakhstan. After transferring $2.5 million, the alleged supplier ceased communication and disappeared.

Zaripov’s wife claims the charges are fabricated and alleges the real motive is to seize the company’s assets and extort a large sum of money.

The SCNS rejected these accusations, stating that a criminal case was opened based on a Kyrgyz citizen’s complaint of embezzlement. “During the investigation, this fact was confirmed. The citizen of the Republic of Kazakhstan was detained, charged, and the court imposed a preventive measure in the form of detention for the duration of the investigation. The investigation is being conducted in full compliance with the legislation of the Kyrgyz Republic,” the agency said in a statement.

The committee added that Zaripov has pleaded guilty and has begun compensating the victims. Authorities are considering whether to revise the conditions of his detention.

This is not the first time a Kazakh national has faced legal trouble in Kyrgyzstan. Earlier, businessman Kamalutin Khalikov was placed on a wanted list on charges of financing the criminal group led by Kamchybek Asanbek, also known as Kamchy Kolbayev, who was killed during a police operation on October 4, 2023.

Central Asia’s First Rowing Canal Opens in Kazakhstan

Kazakhstan has inaugurated Central Asia’s first-ever rowing canal in the southern city of Turkestan. Opened on September 15, the facility is the only one of its kind in the region and meets the standards of both the International Canoe Federation (ICF) and the International Rowing Federation (FISA).

Spanning 100 hectares, the canal stretches 2.5 kilometers and is equipped to host international competitions, including World Cup and Asian Cup events in rowing and canoeing. It will also serve as a dedicated training base for athletes.

The complex includes spectator grandstands, a one-kilometer city beach, and an on-site hotel. In addition to its sporting function, the canal will contribute to environmental sustainability by supplying water for irrigating Turkestan’s green belt.

According to the Ministry of Tourism and Sports, more than 6,000 people in Kazakhstan regularly participate in rowing and canoeing. Officials highlight rowing as one of the most “medal-rich” sports, with 14 medal sets awarded at the Olympic Games and more than 20 at the World Rowing Championships, offering strong opportunities for national athletic achievement.

Authorities expect the new facility to significantly advance the development of rowing in Kazakhstan and to strengthen Turkestan’s profile as a regional hub for both culture and sports.

Russia Opens Criminal Case After Attack on Uzbek Migrants in Vladivostok

Russian authorities have opened a criminal investigation following a violent assault on Uzbek migrants in Vladivostok, carried out by a group of teenagers. The incident, which occurred several days ago, was recorded on video and widely circulated on social media, sparking public outrage. The footage shows the young attackers beating the migrants, mocking them, and shouting insults while one of them filmed and laughed.

According to the press service of the Investigative Committee of Russia for Primorsky Krai, the assault took place during the night of September 10 on Khabarovskaya Street. Investigators reported that the 15-year-old suspects, allegedly intoxicated, first damaged a parked car and sprayed an aerosol can inside it before attacking the driver. They later entered a 24-hour store and beat another man in front of staff and customers. The group also assaulted a truck driver, a taxi driver, and his passenger, using stones and other objects as weapons while shouting loudly in the street.

The committee confirmed that one suspect has been detained, while two others remain at large. All are described in police records as negatively characterized, and at least one is already on trial in a separate hooliganism case stemming from an incident at a local store. If convicted, the suspects could face up to seven years in prison under Article 213, Part 2, of Russia’s Criminal Code, which addresses aggravated hooliganism.

Uzbekistan’s Consul General in Vladivostok, Yusuf Qobiljonov, stated that the victims filed an official complaint with local police. Diplomatic notes have also been sent to Russia’s Foreign Ministry office in Vladivostok and the Primorsky Krai Prosecutor’s Office, urging authorities to take appropriate measures. Qobiljonov emphasized that the case is being closely monitored by both the Uzbek consulate and Russian law enforcement agencies.

Kipling and Code: Tokayev Advocates Global AI Ethics Principles

Kazakhstan’s President Kassym-Jomart Tokayev has called for the creation of an international body to address the ethical dimensions of artificial intelligence (AI) and to draft universal legislation regulating its development and application.

Speaking at the VIII Congress of Leaders of World and Traditional Religions in Astana, Tokayev emphasized that technologies such as AI, big data, and bioengineering are transforming societies at a pace that outstrips the development of ethical and legal frameworks.

“New challenges arise, freedom of choice and privacy, digital equality and security, the use of artificial intelligence and many other technologies. Universal moral values and ideals must be included in the discussion of humanity’s digital future. Any technology should work for the benefit of people,” Tokayev said.

He proposed the creation of an international commission on AI ethics to draft a set of universal principles for responsible AI use.

“We are talking about a kind of ‘commandments for algorithms’ that imply respect for human dignity and the inadmissibility of discrimination when making life-defining decisions,” he explained. Tokayev said such “commandments” would require ongoing dialogue among spiritual leaders, scientists, and technology developers.

Expanding beyond AI, Tokayev underlined the growing importance of spiritual diplomacy at both regional and global levels. He reiterated his previous proposal for a global peace movement under the auspices of the Congress, with religious leaders forming its moral foundation.

“This initiative could unite not only the broader community of believers, but also politicians, representatives of international organizations, state institutions, experts, and, of course, youth,” Tokayev said.

He also warned of mounting risks of global conflict, including the increasing threat of nuclear escalation and what experts have described as a “civilizational crisis”, a worldwide inability to reconcile opposing political ideologies. Citing Kipling, Tokayev noted that divisions between East and West may seem irreconcilable but argued that responsible statecraft and political leadership can bridge cultural and religious divides.

Tokayev further expressed concern over the growing convergence of ultranationalism and patriotism, which he said may confuse younger generations. He also pointed to intensifying clashes between conservative and liberal ideologies, warning that such polarization is driving political instability in numerous countries.

“In such complex realities, constructive diplomacy must play a key role as the main instrument for dialogue, overcoming alienation, and building trust at the international level,” he concluded.