Over the past four years, the number of correspondent accounts held by banks in Kyrgyzstan has fallen by 91

Over the past four to four and a half years, the number of correspondent accounts held by banks in Kyrgyzstan has fallen by 91. This was stated by Anwar Abdraev, head of the Union of Banks of Kyrgyzstan, at a forum dedicated to the development of international payments.

According to him, the reduction in correspondent relationships is taking place against a backdrop of growth in the economy, trade and payment volumes. Abdraev noted that this trend complicates the processing of international payments.

“Over the last four to four and a half years, the number of correspondent accounts has fallen by exactly 91. The economy is growing, mutual trade is increasing, yet the tools for conducting these transactions are dwindling,” he said.

Abdrayev identified correspondent banking relationships as one of the key challenges facing Kyrgyzstan’s international settlements. For trade to grow further, he said, legal, transparent and seamless payment mechanisms are essential.

“All economic and trade relations are based on trust. For the further development of trade and the economy, we need unhindered, legal and transparent payment schemes,” noted the head of the Union of Banks.

He added that the reduction in correspondent banking relationships is taking place against the backdrop of rapid growth in Kyrgyzstan’s banking sector. At the same time, he assessed that the quality of financial services is comparable to that of other markets in the region.

Abdraev also highlighted the economic growth in Central Asia and the increase in mutual trade. In these circumstances, countries in the region may be interested in developing alternative mechanisms for international settlements.

“The world is beginning to consider alternative systems for mutual payments. This is a sign,” he said.

Separately, Abdraev highlighted the importance of the national currency, stating that the Kyrgyz KGS remains fairly strong.

He called on financial market participants and government bodies to devise solutions to preserve and develop international banking ties.