Agreement between the Government of the Russian Federation, Bank of Russia and Government of the Republic of Kazakhstan, National Bank of the Republic of Kazakhstan on measures for ensuring mutual convertibility and stabilization of rates of Russian ruble and Kazakh tenge

of January 20, 1995

The government of the Russian Federation and the Bank of Russia, on the one hand both the Government of the Republic of Kazakhstan and National Bank of the Republic of Kazakhstan, on the other hand, hereinafter referred to as by the Parties,

confirming commitment to creation of Economic union and step-by-step forming of the Payment union,

in view of functioning in the territory of both states of national cash systems with use as legal means of payment in the Russian Federation - Russian ruble, in the Republic of Kazakhstan - the Kazakh tenge,

considering current status of the payment and settlement relations between the Russian Federation and the Republic of Kazakhstan,

recognizing need of carrying out further work on standardization of the current legislation according to the Russian Federation and the Republic of Kazakhstan governing the currency relations

agreed as follows:

Article 1

The parties recognize that necessary condition of achievement of mutual convertibility of Russian ruble and Kazakh tenge is step-by-step implementation of actions of the Parties for stabilization of their rates on the relation to each other and to freely convertible currencies.

Article 2

The parties will perform measures for forming of the liquid foreign exchange market, will provide functioning in parallel of the operating domestic foreign exchange markets in the Russian Federation and the Republic of Kazakhstan.

The Bank of Russia and National Bank of the Republic of Kazakhstan will provide regular (at least two weekly) quotations of the market rate of Russian ruble and the Kazakh tenge on the relation to each other and to US dollar which will be carried out on the basis of ratio of the demand and supply in the domestic foreign exchange markets of the relevant states.

The parties will provide unification of the mechanism of currency exchange control and regulation.

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