Kyrgyzstan to sell securities backed by gold

/By AzerNews/

By Vusala Abbasova

Kyrgyzstan is now in the position to sell securities backed by gold this year, said Sanjar Mukambetov, head of the public service on regulation and supervision of the Kyrgyz financial market

“All the standard-setting work has passed. Currently, a draft resolution is being set up and we will introduce security certificates which are backed by gold," Mukambetov told KirTag Agency.

Mukambetov also noted that the gold certificates as well as the recently released gold bullion could be sold, exchanged and used for other operations. The gold certificates will be able to serve on the Kyrgyz Stock Exchange.

"The National Bank, JSC "Kyrgyzaltyn" will be able to act as an emitter," added Mukambetov.

For the first time Kyrgyzstan began to sell gold bars on May 8, announced the head of the National Bank of the Republic, Tokunbek Abdygulov.

Abdygulov explained that the main reasons for such a decision related to a very high level of "dollarization" of the economy. Moreover since most people still keep their savings in foreign currency, it will be now possible to do so in gold. Thereby, the state suggested an alternative for investments that will help to diversify and give citizens the opportunity to invest in gold.

Abdygulov also highlighted that this way people will be less worried about foreign exchange rate jumps.

The National Bank has released 45 kilograms of ingots for sale.

Kyrgyzstan ranks 86 in the world according to May Statistics of World Gold Council. The official gold holdings of Kyrgyzstan is 4 tons (8.1 percent of reserves).