In Kazakhstan, a Monetary Policy Committee will be created, withdrawal limits for entrepreneurs from bank accounts will be introduced, and licensing of microfinance activities will be implemented in the lending market. What other changes are expected in the financial sector in the new year?
Monetary Policy Committee
Starting from January 2021, a third body — the Monetary Policy Committee — will appear within the structure of the National Bank. Amendments regarding this are being introduced into the Law "On the National Bank of the Republic of Kazakhstan."
The Committee will include current employees of the National Bank."The competence of the Monetary Policy Committee includes decision-making on the base rate. This corresponds to the best practices of countries targeting inflation, where the function of setting the key monetary policy rate is vested in a separate, specially created decision-making body. Elevating the decision-making process on determining the base rate as the main monetary policy tool to the level of a specialized Committee will enhance the efficiency and transparency of the decisions made," explained the National Bank's press service.
Deviation limits of the buying rate from the selling rate of foreign currency
By the Resolution of the Board of the National Bank dated December 21, 2020, "On amendments to the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated July 14, 2020 No. 86 'On establishing the limits of deviation of the buying rate from the selling rate of foreign currency for tenge in operations carried out through exchange offices'," the validity period of the permissible limits of deviation of the buying rate from the selling rate of foreign currency for tenge through exchange offices established in 2020 has been extended until January 1, 2022.
The Resolution has been effective since December 28, 2020."This measure is necessary to ensure financial stability in the domestic foreign exchange market amid volatility in global financial markets, to prevent speculative operations at exchange offices, and to protect the rights of financial services consumers," said the National Bank.
The deviation limits between the buying and selling rates of foreign currency for tenge are set as follows:
for the US dollar – 6 tenge;
for the euro – 7 tenge.
The established limits do not apply to non-cash currency exchange operations.
Cash withdrawals from bank accounts
The maximum cash withdrawal amounts from bank accounts by business entities within a calendar month have been approved:
20 million tenge for small business entities;
120 million tenge for medium-sized business entities;
150 million tenge for large business entities.
This is stated in the joint Resolution of the Board of the National Bank dated December 21, 2020, No. 150 and the Order of the Minister of National Economy dated December 23, 2020, No. 95 "On the approval of maximum cash withdrawal amounts by business entities from bank accounts, and the business entities not subject to cash withdrawal restrictions."
The companies not subject to these restrictions are:
microbusiness entities;
business entities engaged in the procurement of agricultural food products and aquaculture (fisheries) products;
business entities engaged in retail trade of food, beverages, as well as pharmaceutical, medical, and orthopedic products according to the types of economic activities specified in the annex to the joint Resolution and Order;
second-tier banks and the National Postal Operator when withdrawing cash from correspondent accounts opened with the National Bank, and legal entities engaged exclusively in exchange operations based on the National Bank's license for cash foreign exchange transactions.
It is noted that withdrawing cash above the established limits is possible under the following conditions:
providing documents confirming the purpose of cash withdrawal from the bank account;
consent of business entities to provide information to the State Revenue Committee and the National Bank;
obtaining confirmation by second-tier banks and organizations engaged in certain types of banking operations from the State Revenue Authority regarding the absence of grounds for refusing cash issuance exceeding the set limits.
The rules were approved by the joint Resolution of the Board of the National Bank dated December 21, 2020, No. 151, the Resolution of the Board of the Agency for Regulation and Development of the Financial Market dated December 22, 2020, No. 125, and the Order of the Minister of Finance dated December 22, 2020, No. 1223 "On the approval of the rules for cash withdrawals by business entities from bank accounts."
The Resolutions come into force on January 1, 2021.Resolutions No. 150 and No. 151 are aimed at reducing the shadow economy, increasing transparency of business operations, and promoting the wider use of cashless payments in Kazakhstan.
Extension of the acceptance and exchange period for 2006 series banknotes
The period for accepting and exchanging 2006 series banknotes of the national currency in denominations of 2000, 5000, and 10000 tenge has been extended until February 1, 2021.
The exchange of the aforementioned banknotes for currently circulating legal tender is conducted exclusively at the branches of the National Bank.After the indicated date, the branches of the National Bank will cease accepting and exchanging the specified banknotes.
This is stated in the Resolution of the Board of the National Bank dated December 21, 2020, No. 152 "On extending the acceptance and exchange period of the national currency banknotes of the Republic of Kazakhstan of the 2006 series in denominations of 2000, 5000, and 10000 tenge."
Information about the addresses and contacts of the National Bank's branches can be found on the official website in the section "About the NBK" → "Structure of the NBK" → "Branches" → "Territorial branches."
Introduction of licensing for microfinance activities
Starting from January 1, 2021, in accordance with the Law of the Republic of Kazakhstan dated July 3, 2020, "On amendments and additions to certain legislative acts of the Republic of Kazakhstan regarding mortgage loans in foreign currency, improving the regulation of payment services market entities, universal declaration, and economic recovery," licensing of microfinance activities will be introduced to protect citizens and reduce the risks of fraud in the microcredit market.
The full text of the Resolution can be found on the official website finreg.kz in the section "Agency's Regulatory Legal Acts."
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