Kazakhstan And Russia To Swap Tenge And Rubles Without Dollar Intermediary
Photo: Central communications service
Kazakhstan and Russia have signed an agreement on a currency swap between the National Bank of Kazakhstan and the Central Bank of Russia, Orda.kz reports.
The document creates a mechanism for direct exchange of tenge and rubles between the two countries’ central banks.
Economist Arman Beisembayev explained that a currency swap is a temporary currency exchange with an obligation to exchange the money back later.
Without a swap, the U.S. dollar would have to be used as an intermediary. Kazakhstan needs rubles. It would sell dollars to Russia and buy rubles with those dollars. Russia definitely needs dollars, but it does not need tenge, especially in such volumes,the economist said.
According to him, similar mechanisms have been used by other countries. For example, the U.S. has provided currency swaps to the UAE and Argentina.
The details of the agreement have not yet been disclosed. It is unknown what volume of operations is being discussed, how long the mechanism will operate, and in what cases the parties will be able to use it.
The currency swap agreement was part of a large package of documents signed during Vladimir Putin’s visit to Kazakhstan.
The two sides also agreed to provide a Russian state export loan to finance the nuclear power plant project in Kazakhstan.
In addition, Kazakhstan and Russia agreed to expand cooperation in the oil sector and signed a memorandum of cooperation between the National Bank of Kazakhstan and the Central Bank of Russia.
The parties also strengthened cooperation in financial monitoring. Kazakhstan’s Finance Ministry and Rosfinmonitoring signed an additional agreement on cooperation in combating money laundering and terrorist financing.
Documents were also signed on transport digitalization, development of rail freight transportation between Kazakhstan Temir Zholy (Kazakhstan Railways) and Russian Railways, as well as agreements in education, health care, and nuclear safety.
Original author: Alexander Zhdanov
Read also:
- Tokayev And Putin Sign Statement On “Seven Foundations Of Friendship” In Astana
- Putin’s Kazakhstan Visit: Routine Diplomacy Or Political Signal?
- Putin Writes About Kazakhstan Ahead Of Visit: Nuclear Plant, Investments, And Alliance
Latest news
- Environmental Crimes Cost Kazakhstan 3 Billion Tenge In Four Months
- Kazakhstan To Borrow $1 Billion To Support Priority Areas Of Economy
- Kazakhstan Ratifies CSTO Protocol To Speed Up Troop Transit During Crises
- Kazakh Citizen Detained In U.S. Over Alleged Terrorism Concerns
- Tokayev Calls For Modernization Of Kazakhstan’s Space Industry
- Kazakhstan And Iran Move To Expand Key Transit Routes
- Where Do The Trillions Go? Kazakhstan Lawmakers Demand Tighter Oversight Of Energy Sector
- Kazakhstan And Czech Police Dismantle Personal Data Trafficking Network
- Kazakhstan To Expand Average Speed Checks On Toll Roads In 2026
- U.S. Police Confirm Death Of Missing 24-Year-Old Kazakh Man
- Rare Canadian Lynxes From U.S. Arrive At Almaty Zoo
- IMF Urges Kazakhstan To Stay The Course On Inflation
- Kazakh Refinery Could Lose Russian Supplies After Drone Attack
- Kazakhstan Trains To Get Satellite Internet On Major Routes
- Locust Invasion Alarms Residents In Mangistau Region
- Kazakhstan’s Rail Fleet Remains Heavily Worn Despite Modernization
- Kazakhstanis Will See Who Requested Their Data Through eGov
- Mangistau Hospitals Face Antidote Shortage As Karakurt Bites Rise
- Kazakhstan Sees Afghanistan as Key Regional Link
- US Authorities Find Body Believed To Be Kazakhstani Citizen
