Kyrgyz Republic to Include Chinese Yuan in Currency Exchange Rates

The National Bank of Kyrgyz Republic has announced that it will begin publishing the exchange rate of the Chinese yuan (Renminbi, RMB) against the Kyrgyz Som starting September 1. This decision reflects Kyrgyzstan's growing trade relationship with China, which has surpassed its trade volume with the Moscow-led Eurasian Economic Union. Experts suggest that this move could strengthen Kyrgyzstan's economic ties with China and enhance China's influence in Central Asia. Ding Shuh-fan, a professor emeritus at National Cheng-Chi University, noted that the use of the yuan is indicative of a country's economic strength. He emphasized that while Russia maintains long-term influence in Central Asia, Kyrgyzstan's adoption of the yuan could facilitate deeper economic connections with China. Sun Kuo-hsiang, an international affairs professor, highlighted that the Chinese Communist Party has long aimed to internationalize the RMB as part of its strategy for regional economic integration, particularly through initiatives like the Shanghai Cooperation Organization. Sun further explained that Kyrgyzstan's reliance on the yuan for trade and investment could allow China to exert greater control over the country's financial activities. This strategy may also serve as a model for other Central Asian nations, potentially increasing China's economic prominence in the region. Despite its growing ties with China, Kyrgyzstan remains a member of the Collective Security Treaty Organization, which is dominated by Russia. Experts suggest that Kyrgyzstan will need to navigate its relationships with both powers carefully, balancing its security reliance on Russia with the economic opportunities presented by China.