Introduction

Kyrgyzstan is a landlocked country located in the Central Asian region

  • It is also known as the Kyrgyz Republic or Kirghizia
  • The Kyrgyz economy has recorded steady growth in recent years, as it aims to grow its exports to other parts of the world
  • It is important to note that the local currency of Kyrgyzstan, the Som, has become quite weak in recent years
    • The currency has been recording a sharp decline against the US Dollar on a consistent basis
  • This weak currency has meant that the demand for Kyrgyz exports has risen around the world
    • Importers from other parts of the world are able to procure Kyrgyz products at relatively cheaper rates
  • Almost all of the exports from the country are made to Europe and Asia
  • The country’s most exported products are gems and precious metals

This blog discusses Kyrgyzstan’s export of gems as well as the key reasons behind its growth

Kyrgyzstan Relies on the Export of Gems

During the year 2019, Kyrgyzstan or the Kyrgyz Republic exported gems worth $853.5 million

  • This is a highly significant figure since gems are now accounting for over 43% of the total exports from the country
  • The export of gems from the country dwarfs the second most exported product, which is ores. The total export of ores accounts for only 8% of all exports from Kyrgyzstan
  • The UK continues to be one of the largest importers of gems from Kyrgyzstan
  • Other major importers include Kazakhstan, Russia, as well as India

The Central Asian region is blessed with a subsoil that is rich in all types of minerals

  • Gems and raw gemstones are abundantly available in regions such as Ormizan, Kokbeles, and Akterek
  • The country is a leading producer of rubies and blue sapphires
  • It is important to note that the local demand for these gems is fairly limited. This is due to the fact that the country does not have a large population or high purchasing power
  • Therefore, a large proportion of the gems that are found in the country are exported to other parts of the world
  • In particular, there is strong demand for these gemstones in Europe

The Kyrgyzstan government has also tried to boost the export of gems and precious metals in recent years

  • One of the most important initiatives in this regard was to set up free economic zones and business parks from where exporters can operate
  • Further, the government has also developed economic corridors that promote international trade and development

It appears as if the government’s efforts are proving to be worthwhile, as Kyrgyz gems continue to become popular around the world

  • It will be interesting to note whether the country manages to ramp up its production of gems in the coming years, thereby improving its trade position even further

To conclude, it is clear that there are several reasons why gems made in Kyrgyzstan are in high demand. Institutions such as Euro Exim Bank offer customized support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.