ALMATY - Kazakhstan's BTA Bank Monday formally opened a yuan account with the Industrial and Commercial Bank of China (ICBC), marking the operation of a new settlement system that allows Kazakhstani and Chinese customers to trade in tenge or yuan directly, bypassing any third country currency.

"The Industrial and Commercial Bank of China possesses a diversified branch network around China, this will give BTA Bank customers essential advantages in international economic activities with China," said First Deputy Chairman of the Management Board of BTA Bank Askhat Beisenbayev.

Zhang Chunlei, chairman of the Board of Directors of ICBC Almaty, said that the new system will reduce the exchange costs for individuals and businesses of the two countries.

ICBC's cooperation with BTA, the third largest commercial bank if Kazakhstan, will increase the share of bilateral trade settled in yuan, he said.