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National Bank of Kazakhstan to Launch Digital Investment and Gold Coins

The National Bank of Kazakhstan has announced the launch of the Gold Coin project, a digital investment coin, starting March 17. The coin’s value is pegged to 1/20 of a troy ounce of gold, fluctuating based on global gold prices. According to the National Bank, the Gold Coin project aims to offer Kazakhstani citizens an alternative investment tool, integrating digital assets with modern financial technology. One unit of the Gold Coin corresponds to 1/20 of a troy ounce of gold (with one troy ounce equaling 31.1035 grams). The coin’s value will be determined by the price of gold, as set by the London Bullion Market Association (LBMA), and the official exchange rate of the tenge against the U.S. dollar on the preceding day of a transaction. As of the evening of March 13, the price of gold on the London Stock Exchange stood at $2,924.80 per troy ounce. “The new investment instrument will be available through the Tabys mobile application of the Astana International Exchange (AIX), part of the Astana International Financial Centre (AIFC). Users will be able to buy, sell, and gift Gold Coins online. Additionally, holders who accumulate 20 units of Gold Coin can exchange them for a physical ÚKI gold investment coin at National Bank branches nationwide. The ÚKI coin will be introduced into circulation on March 17, 2025,” the National Bank stated in a press release. The ÚKI gold coin was unveiled in February 2025 at the World Money Fair in Berlin, the world's largest numismatic event. The fair gathers central banks, mints, coin production companies, designers, and numismatic publishers. Kazakhstan’s National Bank presented the ÚKI coin, which is made of 99.99% pure gold (Au 999.9), weighs 31.1 grams, and has a face value of 100 tenge. The coin will also be available for purchase via the Tabys application. At the end of 2024, the National Bank of Kazakhstan issued commemorative collector coins, including S. Nurmagambetov. 100 JYL from the “Outstanding Events and People” series and Alexander the Great from the “Great Commanders” series. The first coin, honoring Kazakhstan’s first Minister of Defense and national hero Sagadat Nurmagambetov, is made of cupronickel (MN 25), weighs 15 grams, has a face value of 200 tenge, and was minted in a quantity of 5,000. The Alexander the Great coin is made of sterling silver, weighs 31.1 grams, has a face value of 1,000 tenge (approximately $2), and was issued in a limited run of 2,000 copies. As previously reported by The Times of Central Asia, Kazakhstan began issuing coins with inscriptions in its new Latin-based alphabet in 2019.

Russian Influence National Bank Foreign trade turnover Currency Finance Russia

Tajikistan Nears Full Transition to Ruble in Trade with Russia, As Bilateral Trade Surges

Tajikistan has nearly completed its transition to ruble payments in trade with Russia, with over 90% of transactions now conducted in Russian currency, according to Firdavs Tolibzoda, head of the National Bank of Tajikistan. This marks a significant shift from 2021, when trade between the two countries was evenly split between the ruble and the U.S. dollar. Tolibzoda highlighted that Tajik banks are working to minimize financial risks by primarily cooperating with Russian banks that are not subject to international sanctions. The shift away from the dollar in Tajik-Russian trade began after Western sanctions were imposed on Russia following its invasion of Ukraine. Over the past three years, Tajik exchange offices have no longer faced periodic shortages of U.S. currency, a problem that was common before the transition to ruble payments. In 2024, bilateral trade between Tajikistan and Russia is expected to reach $1.98 billion, reflecting a 15.6% increase from 2023. However, trade remains highly imbalanced. Russian imports account for 95.2% of total trade, with Tajikistan purchasing oil products and essential goods, while Tajikistan’s exports to Russia amounted to just $96 million, primarily consisting of vegetables, fruits, and mineral products such as ores and concentrates. Despite Russia’s dominant role as Tajikistan’s largest trading partner, China is rapidly catching up. In 2024, Russia accounted for 22.1% of Tajikistan’s total foreign trade turnover, while China’s share reached 21.8%. Trade with China grew by 30.1% over the past year, almost double the growth rate of trade with Russia, indicating a shifting dynamic in Tajikistan’s economic partnerships.

Finance Banking Legislation National Bank

The National Bank of Kyrgyzstan Seeks Greater Control Over Commercial Banks

The National Bank of the Kyrgyz Republic (NBKR) has proposed a draft law aimed at regulating tariffs and commissions for banking and payment services provided by commercial banks. The proposal has been published for public discussion on the official government portal Koomtalkuu. The NBKR argues that the regulation is necessary to improve the accessibility of banking services for Kyrgyz citizens. While the current system of free pricing for banking services fosters competition, encourages better customer service and allows for economic flexibility, the regulator is concerned that it also creates barriers for certain segments of the population. “Under competition, some financial organizations may use hidden fees or complex tariff structures, which make it difficult for customers to understand the true cost of services. This also complicates the ability to compare offers and select the most favorable option,” the bill’s background brief states. The National Bank told The Times of Central Asia that interest rates on loans from banks and microfinance institutions in Kyrgyzstan can reach 33–34% per annum. Such high rates significantly increase the financial strain on citizens, reducing the availability of credit. “High tariffs also increase financial burdens on businesses, driving up operational costs. This can lead to higher prices for goods and services, dampened business activity, and reduced consumer demand. In turn, this creates additional risks for banks and the economy as a whole,” the NBKR explained. The central bank also expressed concerns about the potential for market abuse by large financial players. It noted that dominant institutions could inflate fees to suppress competition, discouraging innovation and slowing the development of more affordable financial products. The NBKR argues that Kyrgyzstan needs fair, transparent, and economically justified tariffs for banking services to mitigate these issues. The regulator believes such measures would reduce financial strain on consumers and businesses while fostering a more competitive and innovative banking sector. As of October 1, 2024, Kyrgyzstan's financial sector comprised: 21 banks; 194 non-bank financial and credit institutions; 3 credit bureaus; 1 guarantee fund; 41 payment organizations; and 40 payment system operators. This diverse and growing financial ecosystem underscores the importance of effective regulation to ensure broad accessibility and equitable practices in the banking sector.

Economy Gold mining in central asia Gold National Bank

Uzbekistan Ranked Second in Global Gold Purchases in November 2024

The Central Bank of Uzbekistan significantly increased its gold reserves in November, marking its first gold purchase since July 2024, according to Spot and data from the World Gold Council (WGC). Global central banks collectively made net gold purchases of 53 tonnes in November, continuing the strong buying trend observed throughout 2024. The WGC noted that the decline in gold prices, partly influenced by the U.S. presidential elections, may have further encouraged gold accumulation by regulators. Leading the list of gold buyers was the National Bank of Poland, which added 21 tonnes to its reserves, bringing its total to 448 tonnes. Poland also emerged as the largest buyer of precious metals in 2024, purchasing 90 tonnes over the year. The Central Bank of Uzbekistan ranked second globally in November, purchasing 9 tonnes of gold. This marked its first increase in gold reserves since the summer and brought its annual net gold purchases to 11 tonnes. As of the end of November, Uzbekistan’s total gold reserves stood at 382 tonnes. The Reserve Bank of India ranked third with 8 tonnes purchased in November and 73 tonnes accumulated throughout the year. Other notable buyers included Kazakhstan and China (5 tonnes each), Jordan (4 tonnes), Turkey (3 tonnes), the Czech Republic (2 tonnes), and Ghana (1 tonne). Singapore was the largest seller of gold during the month, offloading 5 tonnes. As previously reported by The Times of Central Asia, Uzbekistan’s international reserves experienced a decline in November. The Central Bank of Uzbekistan reported a $1.7 billion drop, or approximately 3.9%, reducing total reserves to $41.5 billion as of December 1.

National Bank Digital Service Digitalization Finance Currency

Kyrgyzstan Eyes Digital Currency to Modernize Financial System

The National Bank of the Kyrgyz Republic (NBKR) has announced plans to launch a digital national currency, the digital som. The financial regulator expects the initiative to bolster the country’s financial sector and enhance public administration. New Opportunities The NBKR envisions the digital som transforming Kyrgyzstan’s financial landscape and increasing cashless transactions. One major advantage is improved control over budget spending. Additionally, the digital currency will allow payments even in areas without Internet access - crucial for remote regions with limited connectivity. Using simple technologies such as QR codes and mobile applications, citizens will be able to make quick and convenient payments for goods and services. “The monopoly of central banks to issue money is already ending. Anyone with a computer can create cryptocurrencies and various coins. We are keeping pace with this trend,” noted Akylbek Japarov, Chairman of the Cabinet of Ministers. He added that the Ministry of Finance plans to issue digital currency by 2025, allocating up to 27 billion KGS ($314 million) for digital bonds, treasury bills, and gold-backed coins. Under the government’s plan, the digital som will coexist with traditional cash and non-cash currencies. Authorities have devised mechanisms to facilitate its integration into the financial market. Commercial banks connected to the system will receive digital soms in their digital wallets, while equivalent amounts will be debited from their accounts with the National Bank. Transfers of digital soms between individuals will occur via existing banking infrastructure. Digital Stability The NBKR aims to integrate the digital som into the financial system by the end of 2026, with prototype testing scheduled for early 2025. Experts highlight the potential benefits despite some challenges. Economist Nurgul Akimova explained to Times of Central Asia that the Central Bank’s digital currency will feature robust security measures, including advanced cryptography to prevent fraud and ensure confidentiality. State control over issuance will ensure stability and reliability, distinguishing it from electronic money, which can be vulnerable to bank bankruptcies. Digital currency also offers new opportunities for public administration, particularly in taxation. Akimova noted that programmable features could automate tax deductions and other payments to the state, fostering trust and simplifying interactions between citizens and the government. “For the digital som to succeed, it must be widely accessible and easy to use, complementing existing financial instruments,” Akimova added. “Drawing on global experience and our unique national context, digital currency could become a universal means of payment for everyone. This marks a step toward a more modern, inclusive, and sustainable financial system in Kyrgyzstan.” Challenges Ahead However, certain hurdles remain. Akimova pointed out that introducing the digital som to international markets could pose difficulties, as cross-border payments in digital currencies will require the approval of other states.

State Budget Banking Oil OPEC National Bank

National Bank of Kazakhstan Predicts Higher 2025 Oil Prices Than Bank of America

The National Bank of Kazakhstan (NBK) has revised its forecast for 2025 oil prices, lowering the projected cost from $82.5 to $70 per barrel. Despite this adjustment, the NBK remains more optimistic than Bank of America, which recently reduced its 2025 oil price forecast to $65 per barrel. Bank of America’s Forecast Initially, Bank of America analysts projected Brent oil prices at $80 per barrel for 2025, aligning closely with the NBK's earlier forecast of $82.5. However, last week, Francisco Blanch, head of global commodities and derivatives research at Bank of America, announced a significant revision, citing oversupply and reduced demand driven by the global shift toward cleaner energy sources and transportation. The new forecast sets oil prices at $65 per barrel. NBK’s Adjusted Outlook In its updated Monetary Policy Report, the NBK revised its oil price forecast for 2025 to $70 per barrel, compared to an average of $80.3 in 2024. The adjustment reflects weaker anticipated demand from China and OECD countries, coupled with slower global economic growth. The NBK noted that "the relaxation of production restrictions by OPEC+ countries starting in 2025, alongside increased output from North and South America, will likely create a supply surplus in the oil market." External Influences The U.S. presidential election results could also impact global oil dynamics. President-elect Donald Trump and his administration have pledged to sharply increase domestic oil production beginning in January 2025, aiming to reduce petroleum prices. Additionally, Trump has suggested a potential withdrawal from the Paris Climate Agreement, which could further incentivize support for U.S. oil companies. For Kazakhstan, declining oil prices present significant fiscal challenges. According to the Ministry of Finance, the country collected 655.2 billion KZT ($1.2 billion) in mineral extraction tax (MET) from oil companies during the first 11 months of 2024. Oil export revenues contributed approximately 2 trillion KZT ($3.8 billion), bringing total budget revenues from the oil sector to over 2.3 trillion KZT ($4.4 billion) this year. The potential reduction in oil prices could, therefore, have a substantial impact on Kazakhstan’s economy, particularly on its budgetary revenues derived from the oil industry.