Includes how foreign exchange is managed and implications for U.S. business;
Last Published: 7/1/2019

The National Bank of Kazakhstan controls the Tenge, which is fully convertible with the U.S. dollar, via a free float. In 1996, Kazakhstan joined Article 8 of the International Monetary Fund Charter, which calls for full convertibility and the removal of all controls on current account transactions.

There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with an investment (e.g. remittances of investment capital, earnings, loan or lease payments, royalties).  Funds associated with any form of investment may be freely converted into any world currency, though local markets may be limited to major world currencies.

A new law on currency regulation, which comes into force on July 1, 2019, will treat the branch offices and representative of foreign companies as residents (with some exceptions), requiring them to conduct all transactions in the local currency.  Prior to the law’s enactment, foreign company branch offices have been treated as non-residents, allowing them to conduct transactions with both residents and non-residents in any currency. The NBK maintains a new law would help achieve its de-dollarization objectives and does not restrict branch office residents in repatriating earnings or converting money.  Foreign investors, however, say the law would create onerous new reporting requirements and increase the costs of doing business. The provision on residency of foreign financial organizations is scheduled to be enacted in December 2020.  For enterprises registered at the Astana International Financial Center, there is no restriction on the currency of operation and settlement.

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