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The National Bank of the Kyrgyz Republic (NBRK) has adopted a resolution requiring commercial banks to prohibit commissions on money transfers in the national currency, the som (KGS), within the country. The NBKR said such measures are taken to popularize banking services for the population. “The measure will contribute to ensuring accessibility of banking services for all segments of the population and accelerate the introduction of digital technologies in the banking sector,” the bank said. The NBKR resolution will be in force until the end of 2025. The country's authorities have been popularizing non-cash payments for years. President Sadyr Japarov has stated that such payments would bring the economy out of the shadows. “The development of cashless payments is a step towards modernizing our economy, strengthening financial security, and increasing financial inclusion. We must make the payment process so convenient and simple that even those who are used to cash could not resist the transition to new technologies,” said the head of the Cabinet, Akylbek Japarov, at a government meeting.
Uzbekistan's State Security Service, in collaboration with customs officials, hosted an event in Tashkent to investigate the attempted sale of ancient coins. A Tashkent resident was apprehended whilst trying to sell 100 gold coins to a resident of Andijan for $67,000, and an additional 37 gold coins were seized from the seller's car. According to the experts, the gold coins of 5 and 10 rubles, with a total net weight of 776 grams, are considered cultural numismatic treasures of significant artistic and historical value. Minted between 1897 and 1911, the coins have authenticity levels of 900 and 916 and are valued at 950 million UZS. It was discovered that the buyer planned to sell the historical coins, known as “Nikolai”, in the Osh region of the Kyrgyz Republic. A criminal case has now been opened and investigations are underway.
Kazakhstan's Home Credit Bank has stopped its cooperation with the Russian VTB Bank because of the risk of secondary sanctions, Home Credit has reported. “In connection with international sanctions imposed on JSC DO Bank VTB Kazakhstan (VTB Kazakhstan), JSC 'Home Credit Bank' has decided to cease cooperation with VTB Kazakhstan to exclude the risks of secondary sanctions. In this regard, any transfer operations in tenge and foreign currency on customers' accounts to/from VTB Kazakhstan will be stopped,” the bank's statement read. VTB remains the only Russian bank with a subsidiary structure in Kazakhstan. Earlier, Sberbank and Alfa Bank sold their subsidiary banks in the country. The US, EU, and UK are enforcing sanctions on VTB. As of July 1, 2024, VTB Kazakhstan ranked 18th in assets among the country's 21 banks. Home Credit Bank Kazakhstan was previously owned by Home Bank, but fully exited the asset at the end of 2022. Home Credit Bank CEO Kirill Bachvarov explained that this was necessary to restore the bank's rating, as the link to the Russian shareholder negatively affected its position. In July 2024, the U.S. Treasury tightened sanctions against Russia, adding to the list of companies whose work with Russia could lead to risks of secondary sanctions, including VTB Kazakhstan.
Members of Kyrgyzstan's Parliament, the Jogorku Kenesh, have proposed that the national currency, the som, be established as the only means of payment in the country. The draft bill establishes that the som must be used in all domestic transactions, except for those related to export and import. It is seen as a step to reduce Kyrgyzstan's dependence on foreign currency, and stabilize the country's financial system. The draft law emphasizes that using foreign currencies -- especially in real estate, vehicle purchasing, and lending transactions -- creates additional risks for citizens. Sharp fluctuations in exchange rates make it more difficult for borrowers to repay debts. Similar measures have also been taken in Turkmenistan, where using foreign currency for everyday payments is almost entirely outlawed. Iraq has banned all domestic transactions to strengthen and stabilize the local currency, the Iraqi dinar.
