With China we have once again confirmed principle of reciprocity and equality in relationships - Marchenko, Head of the National Bank of Kazakhstan

XI'AN . September 27. KAZINFORM - After V Eurasian Economic Forum in Xi'an (China ) the head of the National Bank of Kazakhstan Grigory Marchenko, who took part in the event, said in an interview to Kazinform about the state of financial and banking cooperation between Kazakhstan and China, and also shared his assessments of the current economic situation in tur country.
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- What are the results of your meetings with Chinese partners? How do you assess financial and banking cooperation between Kazakhstan and China?

- During my visit to China we have held bilateral meetings with Chinese partners and signed a Memorandum of Understanding between the National Bank of Kazakhstan and the Commission of China on banking regulation .

Memorandum is an important document because it provides a legal basis for the interaction of regulators. So we have the National Bank as the regulator of all financial markets, and in China as a big country they have a few adjustments and the banking sector they have is called Commission.

Since 1994 we have been working with two Banks of China: Bank of China and Industrial and Commercial Bank of China (ICBC). And in China there are two representations of our banks: the National Bank of Beijing and BTA Bank in Shanghai. And now it is important that the issue is to be resolved. Another important point is that we have once again confirmed with the Chinese principle of reciprocity and equality in relationships. Therefore, if someone wants to open our subsidiary in China, the China Banking Commission will consider this application carefully and there will be no problems or obstacles.

It should be noted that we have such memorandums signed with many countries. Since China is a neighboring state, and we have a large volume of mutual trade and investment this document is important for us. It has been prepared for a long time, but appears to be endorsed on Wednesday in Beijing.

In addition, in Beijing there was a meeting with the Chairman of the People's Bank of China Governor Zhou Xiaochuan, and we hold such meetings regularly . We have a few topics for discussion - expanding the share of national currencies in payments, sustainable service delivery mechanisms in the framework of the SCO, the use of the renminbi as a reserve currency and issues related to international cooperation.

- Recently and at the V Eurasian Economic Forum in Xi'an much has been said about the need to create sustainable mechanisms for provision of financial services in the framework of the SCO - the Development Fund and the Development Bank.

- In Beijing during the meeting with the Chairman of the People's Bank of China Governor Zhou Xiaochuan we were discussing possibility of establishing a development bank and the SCO Development Fund.

It is necessary to focus not only on a dollar. We have the largest partner, in fact , it is Europe. In the second place is Russia, the third is China's. Generally the basket should consist of 40% of the euro, the rouble - by 30 %, 20% - Yuan and 10% - other currencies - the Japanese yen and the pound sterling.

- During his visit to Kazakhstan President Xi Jinping proposed creating an "economic corridor named Silk Road ". What is your assessment of the potential of this project?

- At the time of the Soviet Union in 1960-70 years all our border with China was shut. We must understand that the Soviet Union was an eurocentric state. And we have quite a large imbalance in the west. Since gaining independence, Kazakhstan began to correct this situation. We have built a pipeline, gas pipeline, rail crossings, i.e. we have invested heavily in infrastructure development. China has the same problem. There are coastal regions, which last 30 years have been developing much faster, and where there is a high standard of living. They now have the task - to develop the interior of China, and they are investing in progress of the western regions of the country. At that the eastern area sends its products to Europe by sea, although , in terms of delivery of goods if they are to go by rail through Kazakhstan , Russia to Europe, there will be benefit in different ways from one to two weeks. Just what we need to develop. And what we have done by now is progress compared to the 1980s. Here, the strategic interests of Kazakhstan, China and Russia are the same, because this is the corridor for the benefit of all countries.

- Thanks for the interesting conversation!

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