Kyrgyzstan unveils plan to strengthen som and ‘de-dollarize’ economy

Food market KyrgyzstanKyrgyzstan’s Ministry of the Economy yesterday released details of plans that it has drawn up in conjunction with the national bank to beef up the national currency – the som – and to ‘de-dollarize’ the country’s economy. 
The plans entail restricting the circulation of the US dollar, stabilising the som’s position on the international currency market, boosting demand for domestic goods and developing home-grown substitutes for imports.
They also allow for reasonable currency interventions to smooth sharp fluctuations in the som’s exchange rate, the introduction of measures to attract bank deposits in the national currency and the restriction of purchase and sale operations in foreign currencies on the domestic market. The government already regularly monitors the price of basic food products such as flour, bread, meat, macaroni, butter, vegetable oil, rice, and beans to ward off unjustified price surges.
Imports currently account for as much as 80% of total consumption and 40% of the average food basket, meaning that any rise in the value of the dollar’s value inflates prices,