Kyrgyzstan Takes Steps to Join Chinese Banking Payment System

Kyrgyz Finance Minister Almaz Baketaev and National Bank Chairman Melis Turghanbaev held a meeting in Beijing with Chinese Finance Minister Lan Fuan to discuss the expansion of financial and economic cooperation between Kyrgyzstan and China.

A key outcome of the meeting was an agreement to establish a financial infrastructure for cross-border settlements and to deepen interbank cooperation, The Caspian Post reports citing The Times of Central Asia.

Among the proposals discussed was the connection of Kyrgyz state banks to China’s Cross-Border Interbank Payment System (CIPS), an alternative to the international SWIFT system, along with the opening of correspondent accounts in Chinese financial institutions.

“This step will create a secure and stable channel for bilateral settlements in yuan, reduce transaction costs, and decrease dependence on settlements through third currencies,” noted the Kyrgyz Ministry of Finance.

Toward Deeper Financial Integration

Kyrgyz officials also expressed interest in acquiring or establishing a licensed payment organization in China. Such a move could streamline financial transactions with Chinese companies and individuals and connect Kyrgyzstan more directly to China’s national payment systems. This would significantly enhance opportunities for Kyrgyz businesses operating in or with the Chinese market.

Baketaev reaffirmed Kyrgyzstan’s commitment to maintaining a systematic dialogue with the People’s Bank of China and the National Financial Regulatory Administration.

The Kyrgyz delegation also participated in a meeting of finance ministers and central bank governors from member states of the Shanghai Cooperation Organization (SCO), reinforcing the regional dimension of Kyrgyzstan’s financial diplomacy.