Increased correspondent banking expands payment channels between Russia and Kazakhstan - regulator

ASTANA. Nov 9 (Interfax) - Madina Abylkasymova, Chairperson of Kazakhstan's Financial Market Regulatory Agency, reported an expansion in the number of correspondent bank accounts to streamline payments between Russia and Kazakhstan.

"Given the significant trade volume between Kazakhstan and Russia, uninterrupted banking transactions are essential. Collaboration with the Central Bank of Russia (CBR) has resulted in the opening of correspondent accounts in non-sanctioned Russian banks, ensuring smooth payments for both individuals and businesses. Over the past year, a substantial number of new accounts have been opened by both Kazakh and Russian banks. Kazakh banks have also established correspondent accounts, contributing to a positive trend in payment dynamics and an increase in trade and mutual payments between the two countries," Abylkasymova told reporters on Thursday.

Currently, 65 Russian banks have opened 205 correspondent accounts with Kazakh banks, and 19 Kazakh banks hold 137 accounts in Russian banks.

Abylkasymova highlighted "the ongoing efforts to assist in the opening of correspondent accounts between the commercial banks of Russia and Kazakhstan. This work is crucial for allowing money transfers and payments that support trade and individual transactions between the two countries."

Over the past seven months, mutual payments tied to trade increased by 11.5%, reaching 9.2 trillion tenge. The previous year saw a 55% growth in these payments.

The official exchange rate as on November 9, 2023, is 466.79 tenge/$1.