Issue 970 - 15.10.2021
15.10.2021

Parliamentary elections in Kyrgyzstan could undermine country's security again

Elections to the main legislative body of the country are to be held in Kyrgyzstan on November 28. Lawyer Tattuububu Ergeshbaeva tried to explain why the upcoming elections could undermine the country's security again. She wrote about this on her page on the social network.

After the change of power took place in 2020 due to dishonest parliamentary elections, the new prime minister, and then the elected president of the countries, once again, as happened in recent decades, changed the Constitution.

From the parliamentary republic, Kyrgyzstan returned to the presidential form of government. According to the new basic law of the country, the parliament will again have 90 deputies instead of 120. However, they will have to be elected according to the new system: 54 mandates on party lists and the rest on single-mandate constituencies.

According to Tattuububu Ergeshbaeva, coordinator of the Tandem Law Society, the upcoming elections may again become a reason for disagreements among political groups and a catalyst for instability. She explained why:

1) Money and admin resource will do their job: each mandate in parliament is approximately 35 thousand votes, in 2015 it was on average 18 thousand. Since the number of voters increased by 500 thousand in comparison with 2015, the number deputies were reduced by 30 mandates under the new constitution.

2) The 5% electoral threshold, in fact, the load is 2 times more than in 2015, which can be equated to 10%. This means that the regional threshold of 0.5% will cause barriers for ordinary parties and candidates. We didn't learn from the coup d'état last year.

3) Single-mandate constituencies are conceptually detrimental to elections of a national scale, when deputies come to parliament lobby the interests of these constituencies, which adversely affects the budget and program of the executive branch.

4) The preferential (open) voting system can be improperly adapted in the shortest possible time, which means there is a risk of the quality of implementation in practice.

Following the results of the parliamentary elections, a number of high-quality parties may again be left overboard, failing to overcome the electoral threshold of 5%. This means that the will of many voters will not be taken into account and their candidates will not end up in parliament.

"This means that there is a high probability of resuscitation of the old pernicious politicians and their re-entry into parliament, which is an insignificant factor," Ergeshbaeva notes.

The constitutional law on elections of deputies of parliament was adopted by the people's deputies of the Parliament of the 6th convocation and signed by the President.

The CEC is simply the body that implements the electoral system in accordance with the adopted laws. Deputies of the 6th convocation and the President, in case of poor performance, should be held responsible for the result of the decisions taken and positions on the formation of the parliament of the 7th convocation.

She expressed the hope that the country finally comes to stability. "I would like to believe in the best, and time is the best indicator. I wish our country security and stability," Ergeshbaeva concluded.

Reported by Asiais (Russia).

Kyrgyzstan General

15.10.2021

Living wage of Kyrgyzstanis increases by 22% and reaches 6,382 som

In Kyrgyzstan, the subsistence minimum in the III quarter of 2021 amounted to 6,382.69 som. This is reported by the National Statistical Committee.

Compared to the corresponding period last year, the cost of living increased by 22.2%. The growth of the subsistence minimum in July-September was noted in all regions of...

In Kyrgyzstan, the subsistence minimum in the III quarter of 2021 amounted to 6,382.69 som. This is reported by the National Statistical Committee.

Compared to the corresponding period last year, the cost of living increased by 22.2%. The growth of the subsistence minimum in July-September was noted in all regions of...

15.10.2021

World Bank lowers economic growth forecasts in Kyrgyzstan due to slow vaccination

The World Bank lowers its forecasts for economic growth in Central Asia due to slow vaccination. This was announced on October 14, during the World Bank's online briefing Overcoming the Challenges of Pandemic and Poverty in Central Asia, said William Seitz, Senior Economist, World Bank Program Manager for Poverty and...

The World Bank lowers its forecasts for economic growth in Central Asia due to slow vaccination. This was announced on October 14, during the World Bank's online briefing Overcoming the Challenges of Pandemic and Poverty in Central Asia, said William Seitz, Senior Economist, World Bank Program Manager for Poverty and...

Finance and Investment

15.10.2021

EAEU notes shortage of large joint investment projects

A meeting of the Supreme Eurasian Economic Council was held under the chairmanship of the President of Kazakhstan Kassym-Zhomart Tokayev. The head of state noted that industrial cooperation between Kazakhstan and Russia is developing, but the union still has a shortage of large joint investment projects.

Kassym-Jomart Tokayev recalled that the...

A meeting of the Supreme Eurasian Economic Council was held under the chairmanship of the President of Kazakhstan Kassym-Zhomart Tokayev. The head of state noted that industrial cooperation between Kazakhstan and Russia is developing, but the union still has a shortage of large joint investment projects.

Kassym-Jomart Tokayev recalled that the...

15.10.2021

Kyrgyz Batken region prepares 30 investment projects worth $630 million

On October 14, Acting Minister of Investments Nuradil Bayasov spoke at an investment forum about the export potential of the Batken region.

The Batken region exports peaches, apricots, apricots, grapes.

“Everyone knows the brands of Batken rice Alyanga and Akturpak. Batken has access to a market of 65 million people. These are...

On October 14, Acting Minister of Investments Nuradil Bayasov spoke at an investment forum about the export potential of the Batken region.

The Batken region exports peaches, apricots, apricots, grapes.

“Everyone knows the brands of Batken rice Alyanga and Akturpak. Batken has access to a market of 65 million people. These are...

15.10.2021

Dollar rally pauses as risk appetite improves

The dollar edged down against major peers on Thursday, touching a 10-day low as rising risk appetite put a brake on the safe-haven currency's recent rally, while the Aussie and Kiwi dollars gained. Expectations that the U.S. Federal Reserve would tighten monetary policy more quickly than previously expected amid an improving economy and surging inflation had fuelled a rise in the greenback since early September. But the dollar reversed course on Wednesday, even after data showed that pricing pressures were still hitting U.S. consumers and the minutes of the Fed's September meeting confirmed the tapering of stimulus is likely to start this year. "It's been a bit of buy the rumour sell the fact," said Vassili Serebriakov, FX and macro strategist at UBS. "The market was quite long dollars and I think we're seeing a little bit of a pullback just based on the market pulling back some of the dollar bullishness," he said. At 10:30 a.m. Eastern time, the dollar index was down 0.036% at 93.982, having touched its lowest level since Oct 4 earlier in the session. On Tuesday, it had reached a one-year high of 94.563. The euro was nearly flat against the greenback, at $1.1593, having hit a nine-day high overnight, while the British pound was up 0.27% against the dollar, at $1.31735. In the short term, risk appetite has improved somewhat in recent days, with concerns around unfavourable growth and inflation easing, and the U.S. equity markets off to a strong start to Thursday's session. That may be adding to the safe-haven dollar's weakness, Serebriakov said. Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level since mid-March 2020. In another report, the Labor Department said its producer price index for final demand rose, but the increase was less than economists polled by Reuters expected, both on a monthly and a year-on-year basis. The Australian dollar, which is seen as a liquid proxy for risk appetite, was up 0.54% versus the dollar at $0.74195, its highest since Sept. 7. The New Zealand dollar also rose, up 0.92% at $0.70285, its highest in 2-1/2 weeks. The dollar's downward trend may be temporary, as the Fed's September meeting minutes also showed that a growing number of policymakers were worried that high inflation could persist. "My expectation is that this dollar weakness will not last and we got back into a longer-term bull trend," said Neil Jones, head of FX sales at Mizuho. Elsewhere, the cryptocurrency bitcoin was down 0.19% at $57,262. Earlier in the session it hit a five-month high of $58,550. A collapse in cryptocurrencies is a "plausible scenario" and rules are needed to regulate the fast-growing sector as a "matter of urgency", Bank of England Deputy Governor Jon Cunliffe said on Wednesday. By John McCrank and Elizabeth Howcroft for Reuters.

The dollar edged down against major peers on Thursday, touching a 10-day low as rising risk appetite put a brake on the safe-haven currency's recent rally, while the Aussie and Kiwi dollars gained.

Expectations that the U.S. Federal Reserve would tighten monetary policy more quickly than previously expected amid an improving economy and surging inflation had fuelled a rise in the greenback since early September.

But the dollar reversed course on Wednesday, even after data showed that pricing pressures were still hitting U.S. consumers and the minutes of the Fed's September meeting confirmed the tapering of stimulus is likely to start this year.

"It's been a bit of buy the rumour sell the fact," said Vassili Serebriakov, FX and macro strategist at UBS. "The market was quite long dollars and I think we're seeing a little bit of a pullback just based on the market pulling back some of the dollar bullishness," he said.

At 10:30 a.m. Eastern time, the dollar index was down 0.036% at 93.982, having touched its lowest level since Oct 4 earlier in the session. On Tuesday, it had reached a one-year high of 94.563.

The euro was nearly flat against the greenback, at $1.1593, having hit a nine-day high overnight, while the British pound was up 0.27% against the dollar, at $1.31735.

In the short term, risk appetite has improved somewhat in recent days, with concerns around unfavourable growth and inflation easing, and the U.S. equity markets off to a strong start to Thursday's session. That may be adding to the safe-haven dollar's weakness, Serebriakov said.

Data on Thursday showed the number of Americans filing new claims for unemployment benefits fell sharply last week to the lowest level since mid-March 2020.

In another report, the Labor Department said its producer price index for final demand rose, but the increase was less than economists polled by Reuters expected, both on a monthly and a year-on-year basis.

The Australian dollar, which is seen as a liquid proxy for risk appetite, was up 0.54% versus the dollar at $0.74195, its highest since Sept. 7.

The New Zealand dollar also rose, up 0.92% at $0.70285, its highest in 2-1/2 weeks.

The dollar's downward trend may be temporary, as the Fed's September meeting minutes also showed that a growing number of policymakers were worried that high inflation could persist.

"My expectation is that this dollar weakness will not last and we got back into a longer-term bull trend," said Neil Jones, head of FX sales at Mizuho.

Elsewhere, the cryptocurrency bitcoin was down 0.19% at $57,262. Earlier in the session it hit a five-month high of $58,550.

A collapse in cryptocurrencies is a "plausible scenario" and rules are needed to regulate the fast-growing sector as a "matter of urgency", Bank of England Deputy Governor Jon Cunliffe said on Wednesday.

By John McCrank and Elizabeth Howcroft for Reuters.

15.10.2021

Stock markets veer up as inflation concerns wane

European stocks extended their gains on Thursday as miners led the way and investors put aside worries over inflationary pressures and supply-chain issues.

The pan-European Stoxx 600 index rose 1.20% in early deals to reach 465.92. China's September PPI moved to its highest level in more than two decades at 10.7% driven by...

European stocks extended their gains on Thursday as miners led the way and investors put aside worries over inflationary pressures and supply-chain issues.

The pan-European Stoxx 600 index rose 1.20% in early deals to reach 465.92. China's September PPI moved to its highest level in more than two decades at 10.7% driven by...

Metals and Minerals

15.10.2021

Centerra Gold Inc. ready to leave Kumtor to Kyrgyzstan on one condition

Centerra Gold Inc. ready to leave the Kumtor gold deposit to Kyrgyzstan. Akylbek Zhaparov announced this to one publication while still in the post of Minister of Economy and Finance.

He confirmed his words to the Tazabek.

Centerra Gold Inc. ready to take such a step if Kyrgyzstan gives up its stake...

Centerra Gold Inc. ready to leave the Kumtor gold deposit to Kyrgyzstan. Akylbek Zhaparov announced this to one publication while still in the post of Minister of Economy and Finance.

He confirmed his words to the Tazabek.

Centerra Gold Inc. ready to take such a step if Kyrgyzstan gives up its stake...

15.10.2021

Bullion peaks on plunging greenback

Gold prices hit a one-month high on Thursday, as the dollar and U.S. bond yields eased while investors assessed how strong inflation data could shape monetary policy.

Spot gold rose 0.4% to $1,799.30 per ounce by 1100 GMT, having earlier hit its highest since Sept. 15 at $1,799.95. U.S. gold futures...

Gold prices hit a one-month high on Thursday, as the dollar and U.S. bond yields eased while investors assessed how strong inflation data could shape monetary policy.

Spot gold rose 0.4% to $1,799.30 per ounce by 1100 GMT, having earlier hit its highest since Sept. 15 at $1,799.95. U.S. gold futures...

15.10.2021

Zinc leads upsurge in non-ferrous metals price settings

Prices for zinc jumped to a fresh 14-year high on Thursday after soaring power prices triggered production cuts at major zinc producer Nyrstar.

Electricity prices have reached record highs in recent weeks, driven by power shortages in Asia and Europe, leading to a curtailment in the production of some metals and...

Prices for zinc jumped to a fresh 14-year high on Thursday after soaring power prices triggered production cuts at major zinc producer Nyrstar.

Electricity prices have reached record highs in recent weeks, driven by power shortages in Asia and Europe, leading to a curtailment in the production of some metals and...

Energy Industry

15.10.2021

Sokuluk HPP-2 becomes good example for launching new small HPPs in all regions of Kyrgyzstan

President Sadyr Japarov took part in the commissioning of the Sokuluk HPP-2 in the Sokuluk district of the Chui region. This was reported by the press service of the Presidential Administration.

The head of state inspected the main structures, got acquainted with the equipment and operation of the hydroelectric power station.

In...

President Sadyr Japarov took part in the commissioning of the Sokuluk HPP-2 in the Sokuluk district of the Chui region. This was reported by the press service of the Presidential Administration.

The head of state inspected the main structures, got acquainted with the equipment and operation of the hydroelectric power station.

In...

Agriculture

15.10.2021

Kyrgyzstan increases imports of farm animals in January-August 2021

The National Statistics Committee today, October 14, published data on trade turnover in January-August 2021.

Cattle import amounted to 29.4 thousand heads against 3.2 thousand in January-August 2020.

Poultry supplies from other countries for 8 months amounted to 159 thousand heads, a year earlier 45.1 thousand.

The total imports of horses in January-August...

The National Statistics Committee today, October 14, published data on trade turnover in January-August 2021.

Cattle import amounted to 29.4 thousand heads against 3.2 thousand in January-August 2020.

Poultry supplies from other countries for 8 months amounted to 159 thousand heads, a year earlier 45.1 thousand.

The total imports of horses in January-August...

15.10.2021

Batken region builds apricot processing plant worth $10 million

A factory for processing Batken apricot is under construction in the Batken region. This was announced by the general director of Kaganat Invest Nurbek Osmonov during the investment forum Development of Batken - Development of the country.

“Today, a production facility of 10 thousand square metres is being built. To date,...

A factory for processing Batken apricot is under construction in the Batken region. This was announced by the general director of Kaganat Invest Nurbek Osmonov during the investment forum Development of Batken - Development of the country.

“Today, a production facility of 10 thousand square metres is being built. To date,...

15.10.2021

NEFTAN creates agro-industrial park in Batken region of Kyrgyzstan

Following the results of the investment forum Development of Batken Development of the Country, which began its work today, the final documents were signed. This was reported by the press service of the Cabinet of Ministers.

In total, 8 memorandums were signed. In particular, the following agreements were reached between:

a memorandum...

Following the results of the investment forum Development of Batken Development of the Country, which began its work today, the final documents were signed. This was reported by the press service of the Cabinet of Ministers.

In total, 8 memorandums were signed. In particular, the following agreements were reached between:

a memorandum...

15.10.2021

US cereals benchmarks gain strength amidst trade market volatility

Chicago corn and soybean futures prices crept up on Thursday, finding chart support after sharp losses over the past two sessions on higher-than-expected U.S. grain supply forecasts.

It has been a rocky week for the corn and soybean markets. The U.S. Department of Agriculture (USDA) on Tuesday released estimates of both...

Chicago corn and soybean futures prices crept up on Thursday, finding chart support after sharp losses over the past two sessions on higher-than-expected U.S. grain supply forecasts.

It has been a rocky week for the corn and soybean markets. The U.S. Department of Agriculture (USDA) on Tuesday released estimates of both...

Manufacturing industry

15.10.2021

Czech engineering company shows interest in reconstruction of Batken and Isfana airports

A Czech engineering company wants to reconstruct airports in Kyrgyzstan. This was announced on October 14, by the representative of the Transcom company during the investment forum in Batken.

About 4-5 years ago, the company began to implement projects for the reconstruction of airports.

One of the pilot projects is the project...

A Czech engineering company wants to reconstruct airports in Kyrgyzstan. This was announced on October 14, by the representative of the Transcom company during the investment forum in Batken.

About 4-5 years ago, the company began to implement projects for the reconstruction of airports.

One of the pilot projects is the project...

Oil and Gas Sector

15.10.2021

Russia vows to set new record for natural gas output in 2021

Russia is on course to set a new record for natural gas production in 2021, but plans to focus on domestic supplies during the upcoming winter, Deputy Prime Minister Alexander Novak said at the Russian Energy Week forum.

“As for production capacities, this year we will reach record volumes of gas...

Russia is on course to set a new record for natural gas production in 2021, but plans to focus on domestic supplies during the upcoming winter, Deputy Prime Minister Alexander Novak said at the Russian Energy Week forum.

“As for production capacities, this year we will reach record volumes of gas...

15.10.2021

Brent tops $84/b as GLOPEC holds strains

Oil prices rose by about 1% on Thursday after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.

Brent crude futures gained 89 cents, or 1.1%, to $84.07 a barrel by 1204 GMT...

Oil prices rose by about 1% on Thursday after the International Energy Agency said that record natural gas prices would boost demand for oil and top oil producer Saudi Arabia dismissed calls for additional OPEC+ supply.

Brent crude futures gained 89 cents, or 1.1%, to $84.07 a barrel by 1204 GMT...

15.10.2021

Uncertainty over FSU supplies ties bulls to North Sea region’s natural gas markets

British and Dutch wholesale gas prices rose on Thursday with heating demand rising amid cooler weather and due to ongoing uncertainty about the level of Russian supply in the coming months.

The British wholesale gas contract for day-ahead delivery was up 18.05 pence at 236.55 pence per therm by 0936 GMT.

The...

British and Dutch wholesale gas prices rose on Thursday with heating demand rising amid cooler weather and due to ongoing uncertainty about the level of Russian supply in the coming months.

The British wholesale gas contract for day-ahead delivery was up 18.05 pence at 236.55 pence per therm by 0936 GMT.

The...

Communications and Transportation

15.10.2021

Namba One app raises $1 million from MOST Ventures

The Kyrgyz group of IT companies Namba Group attracted investments of $1 million in the first round. The Kazakhstani MOST Ventures Fund became the lead investor of the deal. The signing of the deal took place in Nur-Sultan during a business visit of a delegation from Kyrgyzstan to the territory...

The Kyrgyz group of IT companies Namba Group attracted investments of $1 million in the first round. The Kazakhstani MOST Ventures Fund became the lead investor of the deal. The signing of the deal took place in Nur-Sultan during a business visit of a delegation from Kyrgyzstan to the territory...

Real Estate and Construction

15.10.2021

EAEU records 26% increase in housing construction in January August 2021

In the states of the Eurasian Economic Union, 64.6 million square metres of total housing area were commissioned in January-August 2021, which is 13.3 million square metres, or 26.1% more than in January-August 2020.

This is stated in the analytical review of the Department of Statistics of the Eurasian Economic Commission.

The...

In the states of the Eurasian Economic Union, 64.6 million square metres of total housing area were commissioned in January-August 2021, which is 13.3 million square metres, or 26.1% more than in January-August 2020.

This is stated in the analytical review of the Department of Statistics of the Eurasian Economic Commission.

The...

Regional News

15.10.2021

Russia holds world’s fifth-largest gold & foreign currency reserves

Russia has reached a historic record in international reserves, ranking fifth in the world after China, Japan, Switzerland and India, the Accounts Chamber said after an audit of the country’s gold and foreign exchange holdings.

“The volume of Russia's international reserves exceeded $618.2 billion [as of September 1]. This is a...

Russia has reached a historic record in international reserves, ranking fifth in the world after China, Japan, Switzerland and India, the Accounts Chamber said after an audit of the country’s gold and foreign exchange holdings.

“The volume of Russia's international reserves exceeded $618.2 billion [as of September 1]. This is a...

15.10.2021

Bulls keep embracing Russian equity, currency

The Russian rouble firmed against the dollar on Thursday to levels last seen in late July 2020, while a recovery in oil prices helped the benchmark MOEX stock index hit a record high.

At 1304 GMT, the rouble was 0.6% stronger against the dollar at 71.54, having hit its strongest level...

The Russian rouble firmed against the dollar on Thursday to levels last seen in late July 2020, while a recovery in oil prices helped the benchmark MOEX stock index hit a record high.

At 1304 GMT, the rouble was 0.6% stronger against the dollar at 71.54, having hit its strongest level...

15.10.2021

China stock markets depressed on disappointing industry performance

China stocks ended lower on Thursday as record-high factory gate inflation data amid weak demand in September stoked worries over the trajectory of monetary policy support.

The Shanghai Composite index closed 0.1% lower at 3,558.28 points, while the blue-chip CSI300 index fell 0.54% to 4,913.61 points.

The financial sector sub-index ended lower...

China stocks ended lower on Thursday as record-high factory gate inflation data amid weak demand in September stoked worries over the trajectory of monetary policy support.

The Shanghai Composite index closed 0.1% lower at 3,558.28 points, while the blue-chip CSI300 index fell 0.54% to 4,913.61 points.

The financial sector sub-index ended lower...

15.10.2021

China's CPI up 0.7%, PI up 10.7% in September

China's consumer price index (CPI), a main gauge of inflation, rose 0.7 percent year on year in September, data from the National Bureau of Statistics (NBS) showed Thursday.

The figure was lower than the 0.8 percent year-on-year growth recorded in August.

The slower growth was partly driven by a drop in food...

China's consumer price index (CPI), a main gauge of inflation, rose 0.7 percent year on year in September, data from the National Bureau of Statistics (NBS) showed Thursday.

The figure was lower than the 0.8 percent year-on-year growth recorded in August.

The slower growth was partly driven by a drop in food...

Prices and Statistics

15.10.2021

Commodities

Date: October 15, 2021; Source: Bloomberg.com

Date: October 15, 2021; Source: Bloomberg.com

15.10.2021

Exchange Rates

Date: October 15, 2021; Source: the National Bank of Kyrgyzstan
1 US DOLLAR USD / KGS 84,8000
1 EURO EUR / KGS 98,5079
1 RUSSIAN ROUBLE RUB / KGS 1,1813
1 KAZAKHSTAN TENGE KZT / KGS 0,1992

Date: October 15, 2021; Source: the National Bank of Kyrgyzstan

1 US DOLLAR

USD / KGS

84,8000

1 EURO

EUR / KGS

98,5079

1 RUSSIAN ROUBLE

RUB / KGS

1,1813

1 KAZAKHSTAN TENGE

KZT / KGS

0,1992