Kyrgyzstan to introduce Chinese yuan as official currency
Starting September 1, the Chinese yuan will join the Kyrgyz som, U.S. dollar, euro, and Russian ruble as official currencies in Kyrgyzstan, according to the National Bank of the Kyrgyz Republic. An official exchange rate for the yuan will be established.
This move is designed to facilitate trade transactions and strengthen economic ties with China, a key trading partner for Kyrgyzstan. By incorporating the yuan into official circulation, the country aims to stabilize its financial system amid global economic uncertainties and enable businesses and financial institutions to manage currency risks more effectively.
The initiative reflects the yuan’s increasing role in international settlements and its status as a global reserve currency. Additionally, it presents new opportunities for Kyrgyzstan to engage in Chinese investment projects, which could contribute to the development of infrastructure and other essential economic sectors.
The yuan’s exchange rate against the Kyrgyz som will be calculated based on the cross rate with the U.S. dollar, using data from agencies such as Reuters and Bloomberg.
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