Kazakh National Bank sees no reason for another tenge devaluation

Photo: Kazakh National Bank sees no reason for another tenge devaluation / Economy news

Astana, Kazakhstan, June 2

By Daniar Mukhtarov - Trend:

There are no reasons for another devaluation of Kazakh tenge, according to the chairman of Kazakhstan's National Bank, Kairat Kelimbetov.

Speaking to reporters on June 2, Kelimbetov said that no devaluation of tenge is expected, besides the oil prices are high and the country has a margin of safety.

He said that in 2012, the gold and currency reserves of the Kazakh National Bank stood at $28 billion, while by late 2013 they dropped to $24 billion, and today they again amount to $28 billion.

"Aside from that, the country's gross international reserves (GIR) plus the national fund, amount to $103 billion. We have an inflation of 4.5 percent, and 6.9 percent - year on year, meaning it stands within the announced range of six percent to eight percent," Kelimbetov added.

Touching upon the Russian ruble's impact on tenge, Kelimbetov explained that today, on the contrary, the Russian ruble is strengthening.

"In January, the Russian ruble fell to 36 per $1, and now it has strengthened to 34 per $1. And even if there are fluctuations in its exchange rate, this will not scare us, as we have a good margin of safety," Kelimbetov said.

He went on to note that the next wave of devaluation of the national currency is nothing but rumors, adding that in February of this year, Kazakhstan carried out corrections in the national currency rate.

"At that time we said the rate will be 185 tenge, with an error margin of three tenge, and the tenge rate has been fluctuating within the set range till May 1... And it can fluctuate up to 188 tenge," he explained.

It was previously reported that last week dollar's rate suddenly rose in Almaty (Kazakhstan's largest megalopolis) from 182 tenge to 185 tenge.

This caused rumors that possibly there will be a second wave of devaluation in Kazakhstan.

Some experts do not rule out the likelihood of a depreciation of tenge in the near future due to the sanctions of the West against Russia and a possible de-dollarization in the neighboring countries.

Edited by S.I.

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