The National Bank of the Kyrgyz Republic has developed new tools aimed at developing and improving the country’s interbank money market.
Its Board has decided to implement a new market rate — the Bishkek Interbank Rate (BIR). This rate is an interbank benchmark interest rate.
The BIR benchmark rate represents the market interest rate and serves as an indicator of the cost of money in the short-term segment of the interbank market. It will form the basis for pricing a wide range of financial instruments in Kyrgyzstan. The rate will be set daily by the National Bank and published on its official website.
For market participants, a model has been developed that visualizes the term structure of interest rates. It represents the yield curve of government and corporate securities, clearly showing the relationship between a security’s price and its maturity in the national currency.
This initiative aims to increase transparency and accessibility of information on interest rate structures for money market instruments. The yield curve is an important indicator that helps financial and money market participants form expectations regarding future economic conditions and inflation trends, the bank explained.
All participants in the money and financial markets, as well as other economic entities, investors, and international organizations, can use these tools for analysis and decision-making.
The National Bank will continue to work on improving and developing Kyrgyzstan’s interbank money market.
