Kygyzstan Opens Printing Plant
A new state-of-the-art printing plant will allow Kyrgyzstan to produce its own currency and security documents for the first time.
The landlocked Central Asian nation of Kyrgyzstan is preparing for the future, moving in two directions at once. On March 27, Kyrgyzstan President Sadyr Zhaparov announced a new printing plant on the social media outlet Qazinform. Zhaparov said, “Previously, we had to place orders abroad and pay for the production of our national currency. Now everything has changed. We have reached a level where we can also print currency for other countries upon request. At the same time, we have received an international certificate confirming that we meet all necessary standards and requirements in the field of currency production.” Kyrgyzstan will also be producing passports, ID cards, driver’s licenses, vehicle registration certificates, and other documents.
The nation pulled out of the so-called “ruble zone” on May 10, 1993, officially replacing the Russian ruble, which in turn had replaced the Soviet ruble, by introducing the som at an exchange rate of one som to 200 Russian rubles. Russia had attempted to keep the many newly independent nations together financially that had each formerly been part of the Soviet Union. This would have been a trading union similar to the European Union; however, the Bank of Russia would have been its central bank.
Kyrgyzstan has gone through five bank note series since that time. In 2014 and again in 2017, the nation issued commemorative bank notes as well. Until recently, the nation had its bank notes and many security documents printed outside the country. Kyrgyz economic expert Baktybek Shamkeev has estimated the nation can reduce its costs by perhaps as much as 30% by opening its own printing facility.
Neighboring Uzbekistan has been issuing its own national currency for decades. The Davlat Belgisi facility in Tashkent has been producing all bank notes and coins domestically since the late 1990s. It can print currency for other countries as well.
The state-owned OJSC “Uchkun” in Bishkek, Kyrgyzstan, was founded in 1926 during the Soviet period and has been a joint-stock company in health procurement. According to the company’s Chief Executive Officer, Baktybek Sultanov, “We have purchased the equipment and will gradually increase the denominations [being printed]. Previously, we had to pay large sums to have bank notes printed abroad.”
Sultanov said printing commenced with the production of 20 soms. Plans call for 50-, 100-, and 200-som denomination bank notes to follow. Once the transition is complete, Kyrgyzstan will cease ordering notes from abroad.
Sultanov did not go into detail but said the facility has been modernized to include high-security printing. It should also be noted that Sultanov did not mention the 500-, 1,000-, and 5,000-som bank notes also in circulation in Kyrgyzstan when he spoke of the planned denominations.
Kyrgyz bank notes display notable local historical figures and symbols. There have been periodic updates to enhance security features, including watermarks, holograms, and micro-printing. Higher-denomination notes have been introduced as needed due to inflation. The 5,000-som denomination was introduced in late December 2018. Kyrgyzstan currently has an inflation rate of about 9.7%.
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