Astana, Kazakhstan, Feb. 12
By Daniyar Mukhtarov - Trend:
The Kazakh mining and metallurgical enterprises will benefit from the devaluation of the tenge, Kazakh Deputy Executive Director of the Association of Mining and Metallurgical Enterprises Tulegen Muhanov said at a briefing in the central communication service under the Kazakh president on Feb. 12.
"We support the national currency devaluation as the enterprises, included in the association, are working at zero profitability and revenues from products hardly cover the production costs," he said. "They will have extra money that can be spent on modernization of production and business events after the national currency rate is corrected."
Muhanov recalled that the association includes about 300 of the largest mining and metallurgical enterprises in the country, 90 percent of the products are exported.
"Our market share in the country's exports is 13 percent," he said. "The macroeconomic stability of the economy depends on the work of our enterprises."
As a brilliant example, he cited the current cost of one ton of primary Kazakh aluminum, which is $1,650.
"This is by 20 percent less than in 2012," he said. "Many ferrous metallurgical enterprises were in a bad situation because the price for their products reduced twofold."
The Kazakh National Bank decided to abandon the maintenance of the exchange rate of the national currency - tenge at the same level, to reduce the volume of foreign exchange interventions and to reduce interference in the formation of the exchange rate of tenge on Feb. 11.
"The national bank thinks that the new exchange rate will hit about 185 tenge per dollar," according to the statement.
The official exchange rate is 155.5/$1 on Feb. 11.
Translated by NH
Edited by CN