Bishkek, (TDI): Kyrgyzstan is taking significant steps to strengthen its banking relationship with China, as demonstrated by a recent meeting between Zhang Qingsong, Chairman of the People’s Bank of China, and key officials from various ministries in Kyrgyzstan.
This meeting focused on connecting the National Bank of the Kyrgyz Republic to China’s cross-border interbank payment system, which is expected to facilitate smoother financial transactions between the two countries.
Kyrgyz Minister of Finance Almaz Baketaev emphasized the country’s strong interest in utilizing the Chinese payment system, indicating a desire for enhanced cooperation with the Bank of China.
Currently, only two Kyrgyz commercial banks have established correspondent banking relationships with the Chinese financial institution, highlighting an area for growth.
In addition to discussing payment systems, Kyrgyz authorities proposed investment opportunities for Chinese investors in local securities listed on the Kyrgyz stock exchange.
To make this feasible, Kyrgyzstan is prepared to issue securities in yuan, contingent on receiving guarantees from Chinese financial institutions.
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The Ministry of Finance stated that the Kyrgyz side raised critical questions regarding the provision of these guarantees and sought to establish a mutual settlement agreement between the National Bank of the Kyrgyz Republic and the People’s Bank of China.
Kyrgyzstan-China Trade
According to data from the National Statistical Committee of Kyrgyzstan, trade turnover between Kyrgyzstan and China amounted to approximately $11 billion during the first six months of 2024, representing a 40% increase compared to the same period last year.
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By the end of 2023, the total trade figure reached $20 billion, reflecting the growing economic ties between the two nations.
This expansion in banking cooperation is seen as part of Kyrgyzstan’s broader strategy to enhance its economic links with China, tapping into opportunities for investment and development that can contribute to the country’s economic growth.
As both countries look to deepen their financial collaboration, this initiative is poised to open new avenues for trade and investment, benefiting both economies in the long term.
