The yuan catches up with the dollar in Kyrgyzstan's payments for imports of goods and services

Kyrgyzstan is gradually increasing its payments for imports of goods and services in yuan. At the end of 2024, the yuan ranked second in the structure of currency payments for imports, narrowing the gap with the US dollar.

According to data for EAEU countries, 39% of all Kyrgyzstan's import payments are still made in US dollars. However, the Chinese yuan has now consolidated its second place with a 30% share. This is significantly higher than Kazakhstan (2%) and Belarus (15%).

At the same time, the share of the Russian rouble in the republic's payments for imports of goods and services was almost half as much — 16%, while the euro accounted for 12% of all payments and the Kazakh tenge — 1%. Thus, the dollar and the yuan now form the main currency pair in Kyrgyzstan's payments for imports.

This can be explained by the growth in trade turnover between Kyrgyzstan and China (estimated by the Chinese side at $23 billion), as well as the strengthening role of the yuan in international trade. The transition to settlements in yuan allows businesses to reduce currency risks when purchasing Chinese goods and simplifies work with suppliers from the PRC.

At the same time, the structure of foreign exchange earnings from exports remains traditional. Russian roubles account for 70% of Kyrgyz export earnings, US dollars for 19% and yuan for 6%.

This confirms that Kyrgyzstan's exports are still primarily oriented towards Russia. Thus, according to the results of the first five months of this year, the volume of mutual trade with the EAEU countries amounted to $1 billion 856.7 million. Of this, trade with Russia accounted for 67.3%.