By Tony Pizur
June 14th, 2016, The CACI Analyst
After the ruble crashed in 2014, the Kyrgyz Central Bank (KCB) prevented Kyrgyzstan’s national currency, the som, from depreciating in tandem with the Russian currency. Given Kyrgyzstan’s ascension into the Eurasian Economic Union (EEU) and the country’s heavy reliance on remittances from expatriates living in Russia, the KCB’s decision to maintain a relatively strong Kyrgyz currency seems counterintuitive. However, the stable som policy is predicated on long-term structural changes in trade patterns toward China. With the Chinese currency tied to the U.S. dollar, the decision to keep the som stable is based more on central bank policies in Washington and Beijing than in Moscow.
By Mirzohid Rahimov
April 19th, 2016, The CACI Analyst
Central Asian nations consider the development of alternative regional transport communications important aspects of their national economic and political strategy, and the republics have become active participants in various international projects to promote economic cooperation with different countries and regions of the world. The development of internal Central Asian communication networks in general, and Uzbekistan in particular, gives the possibility of extending not only national communications, but also broaden networks in Central Asia. The Angren-Pap rail project is very important for national connectivity and for increased international communication. Different international experiences in economic transformation are relevant for Central Asia’s regional connectivity.
By Rafis Abazov
October 8th, 2015, The CACI Analyst
During his recent visit to China, Kazakhstan’s President Nursultan Nazarbayev signed a series of trade agreements and Memorandums of Understanding (MOUs) on 48 projects valued at about US$ 30 billion. The Minister of Economic Affairs, Yerbolat Dosayev, has called the Chinese market one of the “main markets for Kazakhstan.” The Kazakh government also reiterated its support for the Beijing-instigated “Silk Road Economic Belt (SREB)” initiative and agreed to continue working on several large infrastructure projects. But opinions of Kazakh experts on the SREB are divided. Some believe China’s financial backing will strengthen trade and lead to economic growth, but others are skeptical, claiming it would conflict with the U.S.´s “New Silk Road” initiative.
The Central Asia-Caucasus Analyst is a biweekly publication of the Central Asia-Caucasus Institute & Silk Road Studies Program, a Joint Transatlantic Research and Policy Center affiliated with the American Foreign Policy Council, Washington DC., and the Institute for Security and Development Policy, Stockholm. For 15 years, the Analyst has brought cutting edge analysis of the region geared toward a practitioner audience.