The National Bank of Kazakhstan and the People’s Bank of China have signed a three-year currency swap agreement. The mechanism allows the central banks to exchange tenge and yuan directly, enabling businesses to conduct cross-border settlements without relying on the dollar.
The currency swap acts as an infrastructure line of mutual support. Under the agreement, the National Bank of Kazakhstan can receive yuan in exchange for tenge when needed, and the Chinese regulator can receive tenge for yuan. The document includes an option to extend after the initial three-year term expires.
For the market, this changes payment mechanics. Traditionally, many foreign trade contracts require converting local currency into dollars, transferring through Western correspondent banks, and then converting into the supplier’s currency. Direct regulatory access to liquidity allows a Kazakh company to pay a Chinese partner directly in yuan, bypassing the intermediary chain.
For Kazakhstan, this is a consistent step toward reducing currency risks in foreign trade and de-dollarizing the economy. Direct liquidity access simplifies operations for commercial banks and fintech companies serving importers and exporters. Settlements become faster, and double conversion costs disappear.
For Central Asia’s fintech sector, such agreements set a new standard for cross-border operations. Payment systems no longer need to rely solely on dollar infrastructure to serve the Asian market. The direct currency exchange mechanism gives banks a foundation to launch new B2B products with fixed fees and predictable transfer delivery times.
The swap is part of a broader plan to integrate the two countries’ financial systems. Regulators agreed to merge QR payment infrastructure by the end of the year. This will simplify retail purchases for tourists and business travelers, allowing them to pay using familiar local apps.
In parallel, Kazakhstan and China are preparing for a technological upgrade in settlements. The parties agreed to test cross-border payments using the digital tenge and digital yuan. This pilot project aims to show how central bank digital currencies (CBDCs) can work in real bilateral trade, creating an alternative to the traditional SWIFT bank transfer system.