In Kyrgyzstan, All Large Money Transfers to Russia Assigned to One Bank

Tuesday, April 15, 2025 – 18:55 The financial institution has been granted the rights to carry out operations for six months. In Kyrgyzstan, all large ruble transfers to Russia have been placed under the control of a single bank for six months — OJSC "Capital Bank of Central Asia." The rights to conduct all cross-border transfers and exchange operations for individuals and legal entities to and from Russia in amounts exceeding 3 million rubles were granted to Capital Bank CA starting from April 14 for cash transactions, and from May 1 for non-cash transactions. This decision was made by the Cabinet of Ministers of the Kyrgyz Republic back on March 17. According to experts, in 2024, transfers from Russia to Kyrgyzstan accounted for 93% of all incoming funds — approximately $2.8 billion. In the opposite direction, from Kyrgyzstan to the Russian Federation, the amount was $370 million (83% of all outgoing funds). The concentration of money transfers in a single bank has raised concerns among market participants. The International Business Council of Kyrgyzstan has already warned that the consequences may include increased costs, loss of competition, and risks for both businesses and clients. The prices of goods may rise, as well as the duration of payments. There is also a threat to the financial stability of the system, including potential sanction-related issues. "I believe this decision is difficult to implement," warned economist Iskender Sharsheev in an interview with Vesti.kg. "There are migrant transfers — personal — and then there are business transfers. In the overall statistics, they are not separated. That’s why people often say that migrants send a lot of money. Last year, about one million migrants sent $2 billion. This year, their number dropped to about 400,000, but transfers rose to $2.5–2.7 billion. Did migrants' salaries triple? No — that’s business, re-export." The expert also noted that monopolizing the market violates Kyrgyz law. "Technically, it is difficult to force everyone to transfer through a single bank. Moreover, it is a violation of rights, a destruction of market diversity — a monopoly. Lawyers may point out that such an order violates the Constitution. Other banks may lose their income. Most likely, they will demand that this condition be removed," the economist warned. URL: https://vesti.kg/zxc/item/137853-v-kyrgyzstane-vse-krupnye-denezhnye-perevody-v-rossiyu-i-obratno-peredali-odnomu-banku.html - В Кыргызстане все крупные денежные переводы в Россию передали одному банку - Вести.kg - Новости Кыргызстана #Kyrgyzstan, #RussiaTransfers, #MoneyTransfers, #CapitalBank, #CrossBorderPayments, #RubleTransfers, #KyrgyzEconomy, #Remittances, #FinancialMonopoly, #BusinessRisk, #MigrantTransfers, #EconomicPolicy, #KyrgyzNews, #FinancialRegulation, #MarketMonopoly, #BankingSector, #TransferRestrictions, #CapitalControls, #CurrencyExchange, #InternationalFinance, #RemittanceFlows, #KyrgyzBanks, #RussiaKyrgyzstan, #EconomicImpact, #Reexport, #SanctionsRisk, #CentralAsiaEconomy, #FinancialStability, #LegalViolation, #IskenderSharsheev