National Bank - The Times Of Central Asia

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Digitization

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.

Industry

Store Selling Gold Bars to Open in Kyrgyzstan

Kyrgyzstan’s state-owned gold-producing company, Kyrgyzaltyn OJSC, will open a store in Bishkek on September 5 to sell gold bars. On August 30, Kyrgyzaltyn opened a workshop for the production of gold bars in Kara-Balta, a town 100km west of Bishkek. It is Kyrgyzstan's first enterprise to produce measured gold bars, with a monthly production capacity of up to 14,000 units. The facility uses advanced technologies and modern equipment from Italy and Germany, allowing the production of souvenir coins and medals. Earlier, the mayor of Kara-Balta, Mirlan Jekshenov, told Birinchi Radio that over the next year, the enterprise plans to release up to 3,600 kilograms of gold in bars of various weights — 1, 2, 5, 10, and 20 ounces and 50-100 grams — for the domestic market. In recent years, the country's government has encouraged the population to buy gold from the National Bank, saying that it is the best way for citizens to keep their savings. According to official statistics, gold accounts for almost 39% of Kyrgyzstan’s exports; in 2023, Kyrgyzstan sold more than 20 tons of gold. Most of Kyrgyzstan’s gold is produced at the country’s largest gold mine, Kumtor. Last year the mine produced 13,567 tons of gold, with a total revenue of $848 million and a net profit of $302.5 million.

National Bank Finance Banking Economy

The National Bank of Uzbekistan Places Bonds on the London Stock Exchange

JSC National Bank for Foreign Economic Activity of the Republic of Uzbekistan (Uznatsbank) has successfully placed bonds on the London Stock Exchange in two tranches totalling $411 million : $300 million maturing in 5 years, and 1.4 trillion UZS ($111 million) maturing in 3 years. Uznatsbank's placement of the bonds follows Uzbekistan's successful placement of sovereign bonds, totalling $1.5 billion in three currencies, in international financial markets on May 21. Funds raised by bonds on the London Stock Exchange will primarily be used to carry out directives, issued by the President of Uzbekistan at a meeting on May 20, to attract foreign investment by commercial banks. Monies will also be invested in critical projects across various economic sectors to stimulate the country's economic growth. Uznatsbank is one of the Uzbekistan's first commercial banks to place bonds in the national currency in the international financial market and as such, the transaction will serve as a benchmark for other commercial banks and enterprises of the country. The London Stock Exchange, founded in 1801, is one of world's leading stock exchanges.