The National Bank of the Kyrgyz Republic has announced that from next month the Chinese yuan will be an official currency of Kyrgyzstan.
The yuan will join the Kyrgyz sum, the U.S. dollar, the euro, and the Russian ruble as official currencies, and an official exchange rate will be set.
This measure aims to facilitate trade transactions and improve economic ties with China, one of Kyrgyzstan’s largest trading partners. Introducing the yuan into official circulation will also help stabilize the country’s financial system amid global economic uncertainty and allow entrepreneurs and financial institutions to manage their currency risks better.
Notably, this initiative is being implemented against the backdrop of the yuan’s growing influence in international settlements and its emergence as a global reserve currency. It also opens up new opportunities for Kyrgyzstan to participate in Chinese investment projects, which could positively impact the development of infrastructure and other key sectors of the economy.
The change will take effect from September 1, 2024. The Chinese yuan exchange rate to the Kyrgyz sum will be calculated based on the cross rate with the U.S. dollar. This method is based on data from the agencies such as Reuters and Bloomberg.
