The National Bank of Kyrgyzstan has decided to include the Chinese yuan (Renminbi) in the list of currencies for which an official exchange rate will be established. This rate against the som will be calculated based on a cross-rate with the US dollar, using data from news agencies Reuters and Bloomberg, Akchabar reports.
The publication Akchabar sought to determine how this new measure would benefit Kyrgyz citizens and consulted with expert Almaz Shabdanov, Chairman of the Board of EVDE.
According to Shabdanov, including the yuan in the official currency list could impact international trade, particularly within the EAEU and CIS.
"This decision will promote the increased use of the yuan for trade transactions and services. There is a need to replace currency settlements in rubles and US dollars," noted Shabdanov.
However, as the expert emphasized, this new measure will not bring significant benefits to most Kyrgyz citizens. Despite the potential strengthening of the yuan's role in international trade, it is not a reserve or international currency.
"Opening deposits in yuan may be justified only if investors plan to purchase Chinese bonds or other financial instruments denominated in yuan directly in China. Thus, for most Kyrgyz citizens, increasing deposits in yuan will not have significant meaning," concluded Almaz Shabdanov, head of EVDE.
CentralasianLIGHT.org
August 14, 2024