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Kazakhstan not ready to sharply reduce dependence on US dollar

Business Materials 17 April 2015 17:33 (UTC +04:00)
The process of de-dollarization of Kazakhstan’s economy that was earlier announced by Kazakh President Nursultan Nazarbayev will require a long time.
Kazakhstan not ready to sharply reduce dependence on US dollar

Baku, Azerbaijan, Apr.17

By Elena Kosolapova - Trend:

The process of de-dollarization of Kazakhstan's economy that was earlier announced by Kazakh President Nursultan Nazarbayev will require a long time, the country's National Bank told Trend.

The bank said the successful implementation of the de-dollarization process can be ensured with lasting and planned work by using a complex of interrelated measures and joint efforts of not only the government and the National Bank, but also all economic entities.

Earlier, jointly with Kazakh government, the National Bank worked out the action plan for reducing the level of economy's dollarization for 2015-2016. The action plan was approved in February.

The plan includes three main strategic vectors: ensuring the macroeconomic stability; development of cashless payments and reducing the shadow turnover; precedence of national currency over the foreign currency.

Regarding the macroeconomic stability, the plan envisages measures to diversify the economy and increase Kazakh content in goods, work and services, according to the National Bank.

In order to ensure the precedence of the national currency over the foreign currency, the plan envisages boosting guarantees for the population's deposits in the national currency from 5 million Kazakh tenge to 10 million tenge (185.8 tenge = $1) and reducing the rate of return on the population's deposits in the foreign currency to three percent per annum.

Moreover, to this end, it is planned to provide banks with liquidity and recover the banking sector, ban indicating prices in national currency (including in conventional units).

Edited by SI

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