Agreement between the Government of the Republic of Kazakhstan, National Bank of the Republic of Kazakhstan and Government of the Republic of Tajikistan, National Bank of Tajikistan on measures for ensuring mutual convertibility and stabilization of rates of the Kazakhstani tenge and Tajik rubl

of December 16, 1999

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

in view of functioning in the territory of both states of national cash systems with use as legal means of payment in the Republic of Kazakhstan - the Kazakhstani tenge, and in the Republic of Tajikistan - the Tajik rubl, considering current status of the payment and settlement relations between the Republic of Kazakhstan and the Republic of Tajikistan,

recognizing need of carrying out further work on rapprochement of current legislations of the Parties governing the currency relations on the basis of their further liberalization

agreed as follows:

Article 1

Necessary condition of achievement and maintenance of steady mutual convertibility of the Kazakhstani tenge and the Tajik rubl is implementation by the Parties of actions for stabilization of internal and external cost of national currencies.

Article 2

National Banks of the Republic of Kazakhstan and National Bank of Tajikistan will provide regular exchange of information about the official rates of the Kazakhstani tenge and the Tajik rubl established by them to foreign currencies.

The official rates of the Kazakhstani tenge and the Tajik rubl are established by National Bank of the Republic of Kazakhstan and National Bank of Tajikistan to foreign currencies and to each other on the basis of ratio of the demand and supply in the domestic foreign exchange markets. In the absence of the demand and supply on purchase and sale of national currencies of the Parties the official rates on them are established based on cross-rate to US dollar. The official rates of national currencies serve the purposes of accounting and implementation of customs payments without obligations of Central Banks to buy or sell foreign currencies on these rates.

Article 3

For the purpose of creation of the developed domestic foreign exchange market and ensuring mutual convertibility of national currencies on the basis of the real exchange rates, the Parties will undertake both unilateral, and agreed measures on creation of the most favorable climate for development of trade between the Republic of Kazakhstan and the Republic of Tajikistan.

Article 4

Calculations between business entities of two states can be perfromed in the Kazakhstani tenge and the Tajik rubla, and also in currencies of the third countries. Participants of commercial transactions (business entities) of the states of the Parties independently determine forms of calculations, the prices of contracts and payment currency by the mutual arrangement which is not contradicting the current legislation in the territory of each of the Parties.

Article 5

Based on free standing agreements of the Party can grant each other the loans in the Kazakhstani tenge and in the Tajik rubla according to the current legislation of the Republic of Kazakhstan and the Republic of Tajikistan respectively.

Article 6

The National Bank of the Republic of Kazakhstan and National Bank of Tajikistan for the purpose of ensuring mutual convertibility and stabilization of the exchange rates of national currencies can sign necessary agreements according to legislations of the Republic of Kazakhstan and the Republic of Tajikistan.

Article 7

The parties will take measures to modification of the relevant regulating legal documents of the states for the purpose of ensuring standardization of rules of import and export by physical persons of both countries of cash bank notes of the Republic of Kazakhstan and the Republic of Tajikistan, and also the measures promoting carrying out in the territories of both states of exchange transactions with cash bank notes of the Republic of Kazakhstan and the Republic of Tajikistan on the basis of the real demand and supply.

Article 8

Any disputes and disagreements between the Parties concerning interpretation and/or application of Articles of this agreement, and also other disputes affecting the rights and obligations of the Parties will be permitted by carrying out direct consultations between concerned parties, negotiations or within other procedures provided by international law.

In case of the violation of the either party of provisions of this agreement causing damage to achievement of its purposes, other Party has the right to make the decision on suspension of operation of the Agreement or its separate provisions what it without delay notifies other Party on.

Changes and additions to this agreement can be made according to the mutual written agreement of the Parties.

Article 9

This agreement becomes effective from the date of exchange of notifications on accomplishment by the Parties of interstate procedures necessary for this purpose according to national legal systems of the states of the Parties.

It is made in Dushanbe on December "16", 1999 in two authentic copies, everyone in the Kazakh, Tajik and Russian languages, and all texts have identical legal force. In case of disagreements in interpretation of provisions of this agreement the text in Russian is assumed as a basis.

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