Overview and Opportunities
While the banking market opportunity in the Kyrgyz Republic is small compared to neighbors Kazakhstan and Uzbekistan, there is still demand for U.S. banking products from the private and public sectors. Local companies and banks seek correspondent accounts with U.S. banks because many transactions are dollar-denominated, and over 40 percent of deposits in Kyrgyz banks are dollar-denominated. Banking options for transactions in dollars have decreased since the Russian invasion of Ukraine in 2022, with local banks having to switch correspondent banks to avoid violating international sanctions. In addition to providing correspondent accounts, U.S. banks have the opportunity to provide professional and consulting services to the government as it considers projects such as sustainability-linked bonds and Eurobonds.