Gold - The Times Of Central Asia

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Banking

National Bank of Kyrgyzstan Reports Profit Surge in 2025

The National Bank of the Kyrgyz Republic (NBKR), the country’s central bank, reported a net profit of 33.2 billion soms (about $380.7 million) for the first nine months of 2025, nearly 13 times higher than in the same period last year. The sharp increase was driven by gains from monetary gold transactions, the revaluation of foreign currency reserves, and overall asset appreciation. According to the central bank, gold now accounts for around $5 billion of its total assets, a 2.5-fold rise from 2024. Gold holdings currently represent about half of the NBKR’s total assets. Officials attributed the growth to the bank’s risk-diversification strategy and higher global gold prices. The NBKR also reported a rise in household investment in government securities, reflecting stronger public confidence in domestic financial instruments. While the overall asset structure remains stable, several notable shifts have occurred. The volume of nonmonetary gold and bullion has declined to $1.1 billion, reflecting strong demand from the jewelry industry and increased gold exports. Gold continues to be a key contributor to Kyrgyzstan’s export portfolio. The commercial banking sector is also expanding. The total loan portfolio reached $2 billion, up from $1.5 billion a year earlier. As previously reported by The Times of Central Asia, Kyrgyzstan’s GDP grew by 11.5% in January–July 2025, supported by strong investment in finance, manufacturing, and construction. Construction firms have been borrowing more from local banks, which are expanding lending to meet rising demand from businesses.

Gold

Central Banks Add 15 Tons of Gold in August, Led by Uzbekistan and Kazakhstan

Global central banks added a net 15 tons of gold to their reserves in August, according to the World Gold Council (WGC), citing data from the International Monetary Fund and national central banks. The figure matches the monthly average recorded between March and June, indicating a return to purchasing after a brief pause in July, when reserves remained unchanged due to Indonesia’s 11-ton sale. The WGC observed that although record-high gold prices in 2025 may have tempered some central bank activity, demand remains resilient. “The recent slowdown in buying does not necessarily signal that central banks are losing interest in gold,” the report stated. A full third-quarter review of global gold demand will be published on October 30. Countries expanding their gold holdings in August included Kazakhstan, Uzbekistan, Turkey, China, Bulgaria, Ghana, and the Czech Republic. The National Bank of Kazakhstan led the gains with an 8-ton increase, its sixth consecutive month of accumulation, raising its reserves to 316 tons. The Central Bank of Uzbekistan added 2 tons, lifting its total to 366 tons, although this remains 17 tons below its level at the end of 2024. Turkey and China each purchased 2 tons, bringing Turkey’s total reserves to 639 tons and China’s to over 2,300 tons. Bulgaria’s 2-ton acquisition marked its largest monthly increase since 1997, bringing its holdings to 43 tons ahead of its planned eurozone accession in January 2026. The Czech National Bank also added 2 tons, continuing an uninterrupted buying streak for the 30th consecutive month and raising its reserves to 65 tons. Only two countries, Russia and Indonesia, reduced their holdings in August. Russia sold 3 tons, reportedly for its coin-minting program, while Indonesia offloaded 2 tons. Uzbekistan has remained one of the most active gold purchasers globally. In January 2025, it topped the WGC’s list by acquiring 8 tons, which brought its reserves to 391 tons, representing approximately 82% of its total international reserves.

Gold

Sharp Rise in Global Gold Prices Expected to Benefit Kyrgyz Economy

A significant surge in global gold prices is presenting new economic opportunities for Kyrgyzstan. Over recent weeks, gold has risen by more than $400 per troy ounce on the London Commodities Exchange, signaling potential gains for the country’s gold-dependent economy. Back in 2022, amid escalating global geopolitical tensions, Kyrgyz authorities began encouraging citizens to hold their savings in gold. Three years on, that strategy appears vindicated: gold prices have nearly doubled. According to the National Bank of Kyrgyzstan, the country’s international reserves reached over $7 billion in 2025, growing by $2 billion in just one year. A substantial portion of these reserves is held in gold bullion, highlighting the precious metal’s role as the cornerstone of Kyrgyzstan’s financial resilience. The current price surge is expected to further insulate the national economy from external shocks. In 2024, Kyrgyz mining enterprises produced 24 tons of gold. If production levels remain steady, export revenues could exceed $2.5 billion in 2025. This would provide a significant boost to tax revenues, the national budget, and the country’s foreign currency reserves. Economist Kubanychbek Idinov told The Times of Central Asia that the Kumtor mine, the country’s flagship gold asset, remains the primary driver of state revenue. “Thanks to the nationalization of Kumtor in 2022, government revenues from the enterprise have increased several times. These funds are already being used to build social housing and develop new industries. With the launch of underground mining, authorities now have the capacity to further expand social spending and finance industrial growth,” said Idinov. He estimates that Kumtor still holds between 500 and 700 tons of gold, which could support Kyrgyzstan’s economic stability for up to two more decades. However, experts warn against overreliance on gold. “Prices may rise, but they can also fall,” Idinov noted. “While current conditions offer windfall revenues, these should be strategically invested into infrastructure, trade, and industrial development. That is the path to a more resilient and diversified economy.” The latest rally in gold prices offers Kyrgyzstan a rare window of opportunity. But capitalizing on this moment will depend on how effectively authorities can translate resource wealth into long-term national development.

Gold

Kyrgyzstan Rises to Third Place Globally in Gold Exports

Kyrgyzstan ranked third in the world for gold exports in the first quarter of 2025, selling 3.8 tons of the precious metal on the international market, according to data from the World Gold Council. Despite this export success, Kyrgyzstan’s official gold reserves remain among the lowest in Central Asia. The country holds 34.2 tons of gold, compared to Kazakhstan’s 290 tons and Uzbekistan’s 367 tons. Uzbekistan led global gold exports during the same period with nearly 15 tons sold, while Kazakhstan opted to bolster its reserves, adding 6.5 tons in the first three months of the year. However, figures from Kyrgyzstan’s National Bank tell a different story. In June 2025, National Bank Chairman Melis Turgunbaev told parliament that the country’s reserves had reached 52 tons. This suggests either a sharp two-month increase or a discrepancy between national and international reporting standards. “Our analysts monitor gold prices and market conditions daily. We buy or sell gold as needed, just like currency, that's one of the bank's core functions,” Turgunbaev explained. “Last year, we achieved substantial income through effective reserve management. The first five months of this year have also yielded strong results.” Members of parliament expressed satisfaction with the size of the country’s gold and foreign exchange reserves, which currently stand at an estimated $3.7 billion, exceeding Kyrgyzstan’s annual state budget. Kyrgyz mining operations produce approximately 20 tons of gold annually. A significant share of this output is exported, leaving domestic jewelers with limited access to raw materials. Sales channels include the London Commodity Exchange and buyers in Switzerland. The National Bank also offers measured gold bars for public purchase at a modest premium.

Gold

Uzbekistan’s Gold Exports Surge 55% in Early 2025, Reaching $6.49 Billion

Uzbekistan’s gold exports surged in the first five months of 2025, reaching $6.49 billion, a 54.8% increase compared to the same period in 2024, according to the National Statistics Committee. Gold now accounts for nearly 44% of the country’s total export revenues, up from $2.66 billion and 37.1% during the same period last year. The rise in gold exports reflects a combination of high global prices, hovering near record highs of around $3,000 per ounce and strong international demand for bullion. Analysts note that much of the growth occurred after February, contributing to a sharp uptick in trade revenue. A Strategic Export Commodity Uzbekistan remains one of the world’s top gold producers, largely due to massive operations such as the Muruntau mine, which in 2021 produced approximately 85,000 kg of gold. According to the World Gold Council, Uzbekistan produced 119.6 tonnes of gold in 2023, ranking tenth globally. Gold plays a pivotal role in Uzbekistan’s economy, generating significant export earnings and bolstering foreign currency reserves. It remains a central pillar of the country’s trade strategy and monetary policy. Record Foreign Reserves With the rise in gold exports, Uzbekistan’s international reserves have reached an all-time high. As of late May 2025, reserves stood at $49.66 billion, up from about $37.4 billion in mid-2024. Much of this increase is attributed to gold: the Central Bank of Uzbekistan’s holdings grew both in volume and value, with the rise in gold prices adding over $1.8 billion in recent months. In January 2025, Uzbekistan even became the world’s top official-sector gold buyer, a move aimed at strengthening its reserve position. In 2023, the country earned $8.15 billion from gold exports, nearly double the previous year’s figure, despite some sales from national reserves. These trends underscore gold’s growing importance as both a trade driver and a stabilizing force for Uzbekistan’s economic and financial position.

Currency

Opinion: The U.S. Dollar Loses Its Luster as the Uzbek Som Shines

From May 20, 2025, to June 19, 2025, the U.S. dollar declined from 12,885 Uzbek som to 12,625 som, reaching its lowest level since early December 2023. This trend is anticipated to persist. Over the past 30 days, the dollar has depreciated by 2.08% against the som. The Central Bank of Uzbekistan adheres to a flexible exchange rate mechanism, commonly referred to as a floating exchange rate. This approach allows the value of the Uzbek som to be primarily influenced by market forces of supply and demand, rather than being fixed or pegged to another currency. In the context of Uzbekistan, the Central Bank defines the market-determined exchange rate, permitting the som to fluctuate freely based on the interactions between buyers and sellers in the foreign exchange market. In 2017, Uzbekistan transitioned to a flexible exchange rate regime, aligning the som with market conditions and narrowing the gap between the official and parallel exchange rates. This move is expected to enhance export competitiveness, as noted by the European Bank for Reconstruction and Development (EBRD). While the market predominantly determines the exchange rate, the Central Bank reserves the right to intervene in the foreign exchange market to mitigate excessive fluctuations or address significant imbalances. However, it does not maintain a fixed exchange rate. The primary objective of the Central Bank is to uphold price stability, ensuring low and stable inflation. The flexible exchange rate regime empowers the Central Bank to utilize interest rates as a tool to influence inflation and manage the overall economy. Since 2020, the Central Bank of Uzbekistan has been implementing an inflation targeting framework that guides its monetary policy decisions, including those related to the exchange rate. Uzbekistan has recently achieved a remarkable milestone, with its international reserves soaring to an unprecedented $49.6 billion, primarily driven by a substantial increase in gold prices. This significant figure, recorded at the end of last week, represents the highest level of international reserves since the Central Bank of Uzbekistan began tracking this data in 2013. Uzbekistan has been on a remarkable journey of financial growth, marked by a sustained increase in its reserves over the past five months. Since the beginning of the year, the country's reserves have increased by an impressive $8.48 billion, reaching a new historic high of $49.66 billion. In May alone, the reserves saw a substantial boost of $410.2 million, translating to a 0.8% increase compared to April. This consistent upward momentum not only highlights the resilience of Uzbekistan's economy but also demonstrates its ability to adapt and thrive in a dynamic global landscape. Central to this financial ascent has been the role of gold, which has enjoyed significant demand due to its elevated prices in international markets. Over the last month, gold prices surged by 3.27%, rising from $3,280 to $3,390.07 per ounce. When examining the broader trends, it is evident that gold has significantly appreciated, with a striking 25.5% increase since the start of this year and an even more impressive 41.3% surge over...