INTERNATIONAL: KASE and Bank of China Signed Memorandum of Mutual Understanding

Monday September 18 2017

Kazakhstan Stock Exchange and Bank of China limited concluded a Memorandum of Mutual Understanding.

Cooperation under the memorandum will promote further interaction between national financial markets of both countries. The memorandum was signed during the international conference “Settlements in national currencies of the Republic of Kazakhstan and People’s Republic of China: current situation, trends and outlooks” on September 14, 2017 in Almaty.

Partnership of Kazakhstan Stock Exchange (KASE) and Bank of China is crucially important for extending the use of national currencies in settlements between companies of China and Kazakhstan.

Development of conversion transactions CNY/KZT and extension of the range of traded instruments are the direct contribution of KASE and Bank of China to the development of the goods turnover between the countries and implementation of joint investment projects. The popularity of such instruments is clearly shown by the growing volume of deals in instruments CNY/KZT on KASE. In particular, over the first 8 months of 2017 the volume grew by 59 % on the similar period of last year. Cooperation between KASE and Bank of China began in 1999, when SB Bank of China in Kazakhstan became a member of KASE. Currently, Kazakhstan-based subsidiary of Bank of Chinа is the market-maker for all instruments of the currency pair KZT/CNY, the settlement bank of the Exchange on yuan.

This Memorandum of Mutual Understanding comes on the same day that KASE opened trading in currency pair Chinese yuan / Kazakh tenge under settlement scheme Т+2.

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