Currency regulation

5.1.Legal Framework

The Kyrgyz Republic adheres to a liberal regime of currency regulation and free movement of capital. Kyrgyzstan is a member state of Article VIII of the International Monetary Fund (IMF) Agreement, which provides for the absence of restrictions on current international payments and transfers, as well as the rejection of discriminatory currency practices.

Currency regulation in the Kyrgyz Republic is characterized by the absence of significant restrictions on the purchase and use of foreign currency, the conduct of international settlements, and the transfer of investment income abroad. Currency control is primarily carried out for the purposes of monitoring operations and ensuring the stability of the financial system.

Key regulatory legal acts

Constitutional Law of the Kyrgyz Republic "On the National Bank of the Kyrgyz Republic" dated August 11, 2022 No. 92; Law of the Kyrgyz Republic "On Settlements in the National Currency of the Kyrgyz Republic" dated April 29, 2025 No. 91; Law of the Kyrgyz Republic "On Investments in the Kyrgyz Republic" dated August 12, 2025 No. 198

Authorized body

National Bank of the Kyrgyz Republic

5.2.Use of Foreign Currency

Despite the liberal currency regime, the Kyrgyz som is the only legal tender within the territory of the Kyrgyz Republic, mandatory for acceptance without restrictions for all types of payments. Within the territory of the Kyrgyz Republic, settlements and payments are made in the national currency of the Kyrgyz Republic, unless otherwise provided by law.

Prices for goods, works, and services sold on the territory of the Kyrgyz Republic must also be indicated in Kyrgyz soms and without reference to the exchange rate of foreign currency. The use of foreign currency is permitted only in cases expressly provided for by law, in particular:

• in contracts for the supply of exported and imported goods and services;
• when selling goods and services within investment projects in the fuel and energy sector, which are carried out in accordance with an investment agreement or a public-private partnership agreement concluded by the Cabinet of Ministers of the Kyrgyz Republic, where the currency is determined by agreement of the parties.

Article 307 of the Civil Code of the Kyrgyz Republic dated May 8, 1996 No. 15; clause 33 of the Rules for the Trade of Certain Types of Goods on the Territory of the Kyrgyz Republic dated September 30, 2014 No. 56; part 1 of article 21 of the Constitutional Law of the KR "On the National Bank of the Kyrgyz Republic" dated August 11, 2022 No. 92; part 2 of article 4 of the Law of the KR "On Settlements in the National Currency of the Kyrgyz Republic" dated April 29, 2025 No. 91; part 11 of article 5 of the Law of the KR "On Advertising" dated December 24, 1998 No. 155; part 1 of article 21 of the Constitutional Law of the KR "On the National Bank of the Kyrgyz Republic" dated August 11, 2022 No.

92.

Advertising indicating prices for goods and services in foreign currency is prohibited.

5.3.International settlements

The Kyrgyz Republic does not impose restrictions on the conduct of international settlements for foreign trade, investment, credit, and other civil law transactions. The currency of obligations and payments for such operations is determined by agreement of the parties, unless otherwise provided by law.

When conducting international settlements, banks have the right to request documents and information necessary to comply with the requirements of legislation on countering the financing of criminal activities and other mandatory requirements.

5.4.Repatriation of profits and capital

One of the key elements of the investment regime of the Kyrgyz Republic is the guarantee of free transfer abroad of income and other payments related to investments. Investors have the right to freely transfer abroad payments related to their investments after payment of the relevant taxes and other mandatory payments.

The state guarantees investors the absence of restrictions on currency conversion and transfers of funds to and from the Kyrgyz Republic, including but not limited to the following:31

Article 13 of the Law of the KR "On Investments in the Kyrgyz Republic" dated August 12, 2025 No. 198.

capital contributions

payments under the contract, including credit agreements

profits, dividends, capital gains derived from investment activities

compensation for expropriation

proceeds from the sale or liquidation of all or any part of the investments

payments pursuant to the decision of the competent authority following dispute resolution.31

interest, royalties, and management fees