Central Bank Independence in Transition Economies

7B. Objectives, Formulation of Monetary Policy and Relations with other 

State Institutions 

The main objectives of the Bank are ensuring the stability of the official currency 

of the national currency, conducting monetary and credit control, protecting the 

interests of creditors and depositors, ensuring banking competition and overseeing the 

observance of banking law (Art. 2). The Bank is independent from the Government. 

Any Government inference in the activity delegated to the Bank by law is prohibited 

(Art. 3). The monetary policy is formulated and conducted by the Bank in cooperation 

with the Government. If the Government does not agree with the Bank policy, it makes 

it known to the Parliament which, after consulting with the Bank and with the 

conclusions of the Control Office of the Republic of Kyrgystan, may force the Bank to 

change the adopted policy by passing a standard act (Art. 7).  The Bank acts as the 

financial advisor to the Parliament, the President and the Government. The NBK 

presents annual report on its activity and financial statement to the Parliament (Art. 4).