“A country in the global financial market resembles an adult 30-year-old man who behaves like a child”
In Kyrgyzstan, at the beginning of April, the gold reserve is 47 tons. This was announced by deputies of the Jogorku Kenesh Arslanbek Maliev, Nadira Narmatova and Dinara Ashimova at a press conference on the results of the work of the interim parliamentary commission to study the production and sale of gold in the Kyrgyz Republic.
According to economist Iskender Sharsheev, gold alone is not enough for the development of Kyrgyzstan.
— In general, the value of gold in many countries in the current conditions of the global market is being rethought, — said in an interview with Vesti.kg He. “Its value fluctuates. Investors do not consider gold an absolute guarantor, although it was previously valued as a very reliable tool for economic development and grew in price for a long time. It can be used to stabilize the financial system of the state as an airbag, but it is not enough for the prosperity of the state. If it lies dead weight, then its value falls. Moreover, if earlier the cost of gold could not change for decades, today price fluctuations take literally a few years.
One of the factors that shook the age-old value of the precious metal, the expert sees in the emergence and development of cryptocurrency.
“It is a risky economic instrument in itself,” the expert warned. — High jumps in the value of cryptocurrency are very risky for the budget and can bring it down. However, many countries are seriously studying the use of cryptocurrencies, introducing their technological components at home. Including such giants as the USA, India and China. Gold is more reliable in the sense that it can be physically felt. And such a reserve is necessary for any state. As well as the reserve of the most popular and significant world currencies. But for economic growth today it is much more important to be connected to global capitals, funds, financial markets. Through information technology, banking systems, well-known stock exchanges and so on.
Kyrgyzstan, according to the economist, is a little behind the world trends in this regard.
“We do not have powerful financial centers,” Iskender Sharsheev believes. — Our shares are not listed on the stock exchanges of different countries. The country does not use the opportunities of access to the global financial market. On the one hand, this protects us from the consequences of global crises, the same inflation or shocks in the banking system, as is happening now with Silicon Valley Bank and Credit Suisse. On the other hand, we resemble an adult thirty-year-old man who behaves like a child in these areas, although he should already be a member of the community of mature people. Lack of access to international capital and the financial system greatly slows down our economy. The same Kyrgyz Stock Exchange is a good sandbox for the domestic market, but it is necessary to enter the international level.
Nevertheless, as the expert assessed, it is Kumtor that makes it possible to level the economy of Kyrgyzstan in many respects.
— Significantly increased the budget of the state; increased transactions of the National Bank to equalize the exchange rate, which are also provided by the sold gold; it turned out to increase social payments and salaries to state employees,” the economist said. “All the benefits that a Canadian company used to receive are now received by us. Accordingly, higher income. However, gold is an exhaustible resource. Therefore, more effective tools for the development of the republic are needed. They can be provided by world capital and the global financial market.
Mikhail Gottfried
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