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Kazakhstan Prepares to Introduce Digital Currency

At this week's Central Asia Fintech Summit in Almaty, the Digital National Bank of Kazakhstan presented its vision for a digital version of the country's currency, the tenge. The digital tenge is an electronic version of Kazakhstan's national currency issued by the National Bank. It is designed to complement cash and non-cash forms of money by making financial services available in digital format. Digital tenge can be used for instant payments and transfers, settlements between individuals and businesses, and payment for goods and services through mobile banking applications. This currency is particularly useful in e-commerce, government services, financial technologies, and cashless settlements. It also supports the development of smart contracts, allowing for the automation of financial transactions. The introduction of the digital tenge promotes transparency in financial transactions and improves access to financial services in remote and rural areas. Advisor to the Chairman of the National Bank, Binur Zhalenov, said that the project is planned to be completed within five years. Some components, such as the digital tenge and a single QR in pilot mode, are already being implemented. Full implementation of the digital tenge, including the connection of all second-tier banks, is expected by 2025. Zhalenov noted that the platform is ready and operates based on the National Payment Corporation. In the coming years, it is planned to actively connect financial organizations and expand the digital tenge's capabilities. Last year, Zhalenov explained that using the digital tenge will require an existing banking app for one of the project participants. Thus, users will be able to link a digital tenge account to their current payment card without the need to install additional programs.

Central Asia Kyrgyzstan Local Politics Business & Economy Kyrgyzstan Local Politics Kyrgyzstan Business & Economy

Kumtor: Drop In Gold Production No Cause For Concern

Kyrgyzstan's largest gold mining company, Kumtor, has announced a decrease in gold production. However, authorities assure that this is temporary. In 2023, Kumtor Gold Company produced 13.5 tons of gold, less than planned; the professional community even began to talk about the mine's imminent depletion. However, the company itself hastened to reassure citizens. The company's representatives commented: “Reduced gold production targets are common due to the low grade of gold in commercial ore mined at Kumtor. The mining of low-grade ore will continue for some time. In the future, gold production is expected to increase to 17-18 tons gradually. This takes into account the implementation of projects for underground mining of gold-containing ore and processing waste ore from the tailings pond.” It is worth noting that all of Kyrgyzstan is watching the volume of gold production, as Kumtor's share of the country's GDP is almost 10%. In 2023, the company paid more than $200 million to the country's budget. After nationalization in 2021, foreign experts predicted a rapid closure of production. Allegedly, the gold extracted by open-pit mining at the mine is running out. “Right now, the ore is poor," responded Cabinet Chief Akylbek Japarov to the criticism. "We plan to mine 14 tons each. Previously, we were getting 17 tons. This happens in geology.” However, the low figures have forced the country's authorities to reconsider their approach to mining. Gold will now be mined underground. In addition, it was announced that the processing of gold in Kumtor's tailings pond will begin soon. Specialists of the Institute of Geology at the National Academy of Sciences confirmed to The Times of Central Asia information about the reduction of precious metals in the area of the open pit at Kumtor. Earlier, there were 7 grams of gold per ton of ore; today, it is 5 grams. “But the gold is not running out. There is still quite a lot of gold at Kumtor - over a thousand tons. But everything depends on the areas that are going to be developed. Part of the gold-bearing strip is under glaciers,” said geologist Rozalia Jenchuraeva. The Institute of Geology recommends that the government quietly conduct exploration and not rush to mine gold hidden under glaciers, as this could damage the ecology. “There is still enough gold at Kumtor, and you don't have to worry about it. Although gold mined underground will be more expensive, this method will have less impact on the melting of glaciers. The depth of gold content will probably change, but we will have enough for a hundred years; we need to be rational in our approach to mining,” Jenchuraeva emphasized. Previously, the Kumtor mine produced 20-22 tons of gold annually.

Central Asia Turkmenistan International Affairs Turkmenistan Turkmenistan Local Politics International Affairs Turkmenistan Business & Economy Local Politics Business & Economy

Tajik Company Restores “Tatra Around the World” Expedition Bus

A minibus, involved in an accident in the Pamir Mountains during the "Tatra Around the World-2" expedition, is currently being repaired by a Tajik company. The accident occurred on August 5 , at 3,000 meters near the village of Tukhgoz in the Ishkashim district, Gorno-Badakhshan Autonomous Region, when the minibus veered down a slope and got caught in trees. Fortunately, none of the nine tourists, rescued by residents and the Committee for Emergency Situations, were seriously injured. Eight members of the expedition returned home, whilst Marek Havricek remained with the vehicle in Tajikistan. The minibus is now at the Obi Zulol factory, which has pledged to undertake and finance its repair. As soon as the vehicle is roadworthy, Havricek plans to travel through Tajikistan's neighboring countries and return to Europe. Once home, he is considering displaying the restored vehicle in a museum. The “Tatra Around the World” project, founded in 1987-1990, aimed to show people the real world, as opposed to that promoted through the prism of media and propaganda, and over the past five years has comprised expeditions to the Czech Republic, Iran, North Africa, South and North America, Turkey, Azerbaijan, Georgia, Turkmenistan, Russia, Uzbekistan and Kazakhstan. The last expedition started in February 2020 and prior to the accident, the minibus, designed to accommodate 15 passengers, had covered over 175,000 kilometers through Europe, Africa, America, and Central Asia.

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Leading UAE Hotel Chain Explores Options in Uzbekistan

A world-famous chain of hotels in the UAE is exploring entering the Uzbekistan market. The announcement follows talks between Uzbek diplomats and Phillip Crouse, vice president of the United Arab Emirates' Jumeirah Group, and an introduction of the company's team to the recent reforms implemented in Uzbekistan, as well as programs and regulations to increase the country's tourist attractiveness, existing tourist routes, flights between the two countries, and hotels. Representatives were also presented with options to privatize or reconstruct large hotel complexes in the country. The entry of the Jumeirah brand into the Uzbekistan market will further increase the country's number of luxury hotels and enhance its ever-expanding tourist market. Over the past seven years, the number of foreign tourists visiting Uzbekistan has tripled, the volume of tourism services has increased fivefold, and the number of hotels and accommodation facilities has increased tenfold. Last year, more than 6.6 million tourists visited the country, providing a revenue of some 2.1 billion dollars, and according to recent reports, Uzbekistan aims to increase the number of foreign tourists to 15 million by 2030. Jumeirah, part of Dubai Holding, is a global luxury hotel company with 26 properties, including resorts, city hotels, and serviced residences across the Middle East, Europe, and Asia.

Central Asia Kazakhstan Local Politics International Affairs Local Politics Kazakhstan Kazakhstan International Affairs Business & Economy Kazakhstan Business & Economy

Kazakhstan Bans Apple Imports to Support Domestic Producers

The government of Kazakhstan has temporarily banned the import of apples into the country by motor transport until the end of the year. The decision to introduce the ban was made and announced late in August, but the ban took effect on October 8. According to the Ministry of Agriculture, the ban will last during harvest to support domestic apple production. The move will allow domestic gardeners to sell apples at reasonable prices. During the off-season, apple imports will not be restricted. The government of Kazakhstan has taken support measures in the form of subsidies and preferential loans to develop domestic apple production. As a result, over the past five years, the domestic supply of apples has increased from 62.9% in 2019 to 80% in 2023. At the same time, local farmers are experiencing dumping from foreign producers. High competition with imported products reduces the profitability of domestic producers. With the parallel import of apples during harvest, Kazakhstanis need help selling their products. From January to July 2024, Kazakhstan imported about 107,000 tons of apples, 58% more than in the same period in 2023, from Poland, Iran, Uzbekistan, and China. During that period, apple imports from China increased 18-fold and from Iran — sevenfold. The ban does not apply to imports from fellow members of the Eurasian Economic Union—Armenia, Belarus, Kyrgyzstan, and Russia—or to the international transit of apples through Kazakhstan's territory. Kazakhstan is the birthplace of apples — particularly the famous aport apples, which grow in the Almaty region. Translated from Kazakh, Almaty means “place of abundance of apples.”

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Kazakhstan to Crack Down on Motor Fuel Smuggling to Kyrgyzstan

On October 8, Kazakhstan’s Financial Monitoring Agency held a meeting on strengthening control over the smuggling of motor fuel from the country’s border regions. As gasoline prices in Kazakhstan are significantly lower than in neighboring Kyrgyzstan, gasoline is transported from the southern regions of Kazakhstan to northern Kyrgyzstan in passenger car gas tanks. In practical terms, drivers fill up their cars at Kazakh gas stations close to the border, then enter Kyrgyzstan and redistribute the gasoline. According to the Financial Monitoring Agency, up to 10,000 tons of fuel are exported this way monthly through the Kazakh-Kyrgyz border. Fuel is also illegally exported by railway tanks, with documents indicating other contents inside the tanks. At the meeting, the Kazakh government and law-enforcement agencies developed an algorithm of action to prevent the illegal export of motor fuel. Since the beginning of this year, Kazakh law enforcers have filed 21 criminal cases concerning the illegal export of almost 3,500 tons of fuel. Kazakh gasoline is sold in plastic bottles on northern Kyrgyzstan's roadsides and around Bishkek. The most popular gasoline, AI-92, is sold by roadside traders for 58 KGS per liter ($1 = 85 KGS), while authorized gas stations sell it for 67 KGS per liter. In 2023, Kyrgyzstan’s Tax Service confiscated 9,599 liters of illegal fuel, up from 3,422 liters in 2022.