Kazakh central bank governor expects greater trade in regional currencies among SCO members

Timur Suleimenov, governor of the National Bank of Kazakhstan, emphasized a growing trend among member states of the Shanghai Cooperation Organization (SCO) towards using local currencies for international trade, significantly reducing trade frictions.

The SCO, the world's largest regional organization by land mass and population, was established in June 2001 in Shanghai by China, Kazakhstan, Russia, Kyrkistan, Tajikistan and Uzbekistan.

According to Suleimenov, the organization is leading the charge toward the use of local currencies in the region. Currently, the U.S. dollar dominates around 60 percent of Kazakhstan's international trade, followed by the Russian ruble at over 20 percent, with the Chinese yuan and euro also playing a role.

The transition away from the U.S. dollar for regional trade poses significant advantages for the Central European country's economy, he stressed.

"Kazakhstan is an extractive economy, so we're heavily dependent on oil and gas, uranium, metals, and things like that. When you trade with your partner through some intermediate currency, you're facing additional expenses. And in the world of business, in the world of commerce, any additional tariff, any additional fee is very important because you're losing your competitiveness, you're losing your income, your margins, and things like that. So the shorter the way between the mutual interaction, the better. And therefore, we strongly support the overall move towards trading within our organization in local currencies, in our national currencies," the bank governor said in a recent interview with China Global Television Network (CGTN).

Emphasizing the significance of economic partnership in advancing international cooperation all levels, Suleimenov called for the SCO to play a greater role in facilitating trade.

"The SCO has grown to become not only a political organization, an international relations organization, it has become an economic [organization], because economy is underlying pretty much every fabric of our society, of our countries. And therefore, without this dimension, it is very difficult to cooperate on a political level, international level, and things like that. So, we do believe that economic dimension needs to be further developed, economic and financial [dimension] needs to be further developed," he said.

"I think economic cooperation needs to be one of the pillars of the SCO. And to that end, I think we have very clear instructions from our leaders. They fully support, moreover, they instruct us to go ahead and start cooperating. That concerns governments, central banks, banking associations, and chambers of commerce," Suleimenov added.

Kazakh central bank governor expects greater trade in regional currencies among SCO members

China and Kazakhstan have witnessed an upsurge in people-to-people and cultural exchanges in recent years, a development that Chinese President Xi Jinping hailed in a signed article published in Kazakh media outlets prior to his visit to the central Asian country.

Xi arrived for a state visit to Kazakhstan on Tuesday, where he will also attend the 24th Meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO).

On the same day, the signed article from the Chinese president was published in the Kazakhstanskaya Pravda newspaper and Kazinform International News Agency under the title "Staying True to Our Shared Commitment and Opening a New Chapter in China-Kazakhstan Relations."

In the article, Xi highlighted the enduring friendship between the Chinese and Kazakh peoples, citing an example involving Chinese musician Xian Xinhai and Kazakh composer Bakhytzhan Baikadamov.

Over 80 years ago, Xian and Baikadamov met and became close and devoted friends despite their different nationalities and languages.

"In 1943, my father happened to meet Xian Xinghai, who was sitting on a box holding a violin. Seeing how helpless and homeless Xian was, my father took his hand and brought him home," Baikadamova's daughter Baldyrgan said.

Xi also mentioned the much-respected Kazakh ophthalmologist Saulebek Kabibekov, who treated more than 200,000 patients during his 25-year stay in northeastern China.

There was also a nod to the hugely popular Kazakh singer Dimash Kudaibergen, who took China by storm after he won the second place in a popular reality singing competition, "Singer 2017", and later had the chance to meet Xi.

"I first met President Xi in 2017. After the performance, he came to me and told me about his impressions [of] my work and musical journey in China. Since then, I've been exploring Chinese culture and history which, of course, has inspired me infinitely," said Kudaibergen.

People-to-people exchanges between the two countries have also become more frequent since mutual visa-exemption arrangements took effect last year, facilitating greater travel between the two sides.

Last year, a total of 600,000 cross-border trips were recorded. In the first quarter of 2024, the number of visits in both directions had already amounted to 200,000 and are expected to reach a new high by the end of the year.

China, Kazakhstan see upsurge in people-to-people, cultural exchanges