Regulation of foreign exchange operations of commercial banks in financing construction projects

¹ Jalal-Abad State University named after B.Osmonova, Jalal-Abad city, Kyrgyz Republic
² Kyrgyz National University named after Zh. Balasagyn, Bishkek, Kyrgyz Republic
³ Kyrgyz State Technical University n.a.I.Razzakov, Bishkek, Kyrgyz Republic

^* Corresponding author: umut.abdyldaeva@kstu.kg

Abstract

This article is devoted regulation of foreign exchange operations of commercial banks in financing construction projects. The expansion of international relations and internationalization of economic life, especially in view of the foreign economic activities of enterprises, make it necessary to study currency operations in special currency markets. In this context, commercial banks play an important role in reducing financial risks, especially currency risks in financing construction projects. Over the years of existence of the currency market in Kyrgyzstan, the experience of currency operations, currency trading and currency services for corporations and individuals has been accumulated, which proves the efficiency and profitability of such operations. In addition to receiving commissions, commercial banks also play a role in the financial stabilization of national monetary systems and international payment and settlement systems. In the context of inter-bank competition, the range of services offered to satisfy the foreign exchange needs of market participants is steadily growing, thanks to the development of international trade integration and considerable simplification of monetary circulation in the currency operations of banks around the world. The purpose of this study is to reveal the need for regulation of currency transactions in financing construction projects and in the financial-credit system and the digitalization of these processes.