Kazakhstan, China to move to tenge-yuan swap transactions
Kazakhstan, Astana, June 14 / Trend, A. Maratov /
Kazakhstan and China have agreed to exchange national currencies within the tenge-yuan swap transactions. The agreement was signed between the National Bank of Kazakhstan and the People's Bank of China during the Chinese delegation's visit to Astana.
The Chinese delegation headed by President Hu Jintao is on a visit to Astana as of Monday, June 12. The Chinese and Kazakh leaders held meetings on the same day.
"The agreement on swap transactions covers the amount of one billion dollars, which is equal to seven billion yuan or 150 billion Kazakh tenge," vice chairman of the National Bank of Kazakhstan Bisengali Tadjiyakov said after the Chinese and Kazakh leaders met.
Under the agreement, new mutual accounts will be opened, providing funds worth one billion dollars to draw from for a period of three years, he said.
The swap transactions are expected to be carried out as of July 1, Tadjiyakov said.
He said that currency exchanges have long been permitted using tenge-yuan in Khorgos, a border point between Kazakhstan-Chinese, bypassing the third currency.
China and Kazakhstan's meetings also reached agreements on environmental protection and comprehensive strategic partnership.