Russia, Kazakhstan central banks sign ruble–tenge swap agreement

The Central Bank of Russia has signed a currency swap agreement with the National Bank of Kazakhstan, providing both sides with access to short-term liquidity in rubles and tenge, the Russian regulator said in a statement.

According to the Bank of Russia, the arrangement is aimed at supporting the operational objectives of both central banks by facilitating access to national currency funding when needed.

The swap line is set at 35 billion rubles and 225 billion tenge. The agreement has been concluded for a period of three years, with individual swap transactions limited to a maximum maturity of one year and based on market interest rates.

A currency swap is a financial instrument involving the exchange of currencies with a commitment to reverse the transaction at a predetermined future date and agreed exchange rate.