In the context of global uncertainty, many central banks are ramping up their investments in gold. This, in turn, leads to rising gold prices, as well as prices for other precious metals such as silver and platinum, which are becoming safe assets for investors.
Experts note that the current situation in financial markets is unstable due to the sharp rise in prices. However, for Kyrgyzstan, record gold prices may have positive consequences, as noted by Doctor of Economic Sciences Tolonbek Abdyrov in an interview with IA "Kabar".
“On January 25, gold surpassed the $5,000 per ounce mark for the first time in history. This is great news for Kyrgyzstan, as gold is one of our country's main export goods.
With rising gold prices, we receive more foreign currency revenue for the same volume of extraction and export. This is important because we import various goods, including equipment and medicines. Thus, the more currency comes from exports, the easier it is to pay for foreign supplies. In the absence of external shocks, the exchange rate of the Kyrgyz som becomes more stable.
If we look at the statistics, in 2024, the total export of goods from Kyrgyzstan amounted to about $5 billion, of which $2.5 billion came from gold sales. This means that almost half of all commodity exports are related to gold,” emphasizes Tolonbek Abdyrov.
An important aspect is also that President Sadyr Japarov has achieved full state control over the Kumtor deposit. Now this mine operates for the benefit of the country, providing tax revenues to the budget and increasing gold and foreign exchange reserves, as well as allowing Kyrgyzstan to export precious metals. This makes this sector of the economy strategically important for ensuring resilience to external shocks.
“According to international studies, the contribution of Kumtor to state revenues is quite significant. The IMF report notes that tax revenues have increased significantly.
Another important effect is the overall resilience of the economy. The increase in foreign currency revenues from gold exports facilitates the support of international reserves, which helps to cope with external shocks such as fluctuations in import prices and logistics disruptions. Thus, the high price of gold protects the economy of Kyrgyzstan,” notes the expert.
“We can expect further growth in gold prices. The president has taken serious steps to keep Kumtor under the control of Kyrgyzstan, which is an important factor for the development of our economy,” adds Tolonbek Abdyrov.
Investors are actively responding to changes in the global economy. In periods of instability, they seek to invest in reliable assets such as gold, which is considered a protective tool against inflation. Despite currency fluctuations, precious metals remain a reliable benchmark.
Ulugbek Yereshayev, an expert in international relations, emphasizes that global crises always lead to increased demand for gold. However, the current price increase is unprecedented and has no historical analogs, which explains the records being set today.
“The current trend in financial markets is clearly beneficial for Kyrgyzstan, as it leads to additional revenues in the budget and improves economic indicators,” notes the expert.
Overall, the government demonstrates effective management. Selling precious metals at high prices can positively impact the economy, but this is not the only path to growth. Gold remains a reliable means of payment in international trade, and having a strategic reserve with the possibility of replenishment will create a solid foundation for further development,” concludes Ulugbek Yereshayev.
