Emerging Markets Rates and Currencies Handbook

157 Citi | Emerging Markets Currencies Handbook 2021 Kazakhstan Source: Citi indicative information FX Spot FX Forwards NDFs FX Options Interest Rate Swap Interest Rate Options XCCY swaps Market Overview Onshore Offshore Onshore volume (MM USD daily) 80 — 1100 2 — 13 1 — 12 Marginal N/A N/A N/A Offshore volume (MM USD daily) 5 — 15 3 — 17 5 — 15 Marginal N/A N/A Marginal Onshore max tenor (or typical tenor for spot) T + 1 2 years 2 years 1 year N/A N/A N/A Offshore max tenor (or typical tenor for spot) T + 1 3 years 3 years 1 year N/A N/A 3 years Onshore typical deal size (MM USD) 1 — 2 1 — 2 1 — 5 Transactions are episodic N/A N/A N/A Offshore typical deal size (MM USD) 3 — 7 1 — 5 1 — 5 Transactions are episodic N/A N/A Transactions are episodic CitiFX Pulse Capabilities Market opening hours and liquidity during the day Market is organized on Kazakhstan Stock Exchange with trading session from 10.15 till 17.00 local time. Local time is GMT+6. 10.15 11.30 15.30 Good Liquidity No Liquidity Fixing (incl. ticker) 5pm KASE for NDF fixing REUTERS ticker: USDKZTTOMWA=KZ. Regulation Offshore restrictions Onshore market is allowed to trade with offshore market participants. Offshore entity can trade KZT with other offshore entities if they both have open Nostro accounts in KZT. Requirements for Residents (except for branches and representative offices of foreign companies) Export proceeds must be credited to the bank accounts in Republic of Kazakhstan. In the following cases, export proceeds can be received into accounts opened abroad and requirement for repatriation will not apply in the below cases: • Secure fulfilment of liabilities of resident under loan extended by non resident or funds credited to finance activities of resident’s branches and representative offices. • Use of foreign currency received by residents from holding outside the RK, exhibitions, sports, cultural and other similar events to cover expenses in the period of their conduct crediting to accounts in foreign banks of transport organizations-residents of currency earnings in order to pay the costs associated with the payment of port and other fees in the territories of foreign countries and maintenance of vehicles outside the RK such transport organizations and their passengers, as well as expenses for ensuring the activities of branches (representative offices) of such transport organizations. Need to notify the National Bank of the Republic of Kazakhstan when prior to conducting transactions using foreign account. Sale and purchase of foreign currency in the Republic of Kazakhstan must be conducted by residents and non- residents only at authorized banks. Authorized bank is a bank established on the territory of Republic of Kazakhstan. Non-residents can buy/sell currency without restrictions and supporting documents for the further implementation of intra-corporate transfer (transfer to Head office). Requirements to open a foreign currency account Foreign currency account should be opened for FX operations. Deal Management Rollover: No, only through FX Swap. Unwinding: No, only through FX Swap. Early Maturity: No, only through FX Swap.