Astana, Kazakhstan, Feb.11
By Daniyar Mukhtarov - Trend:
The devaluation of the Kazakh currency the tenge, is related to processes in the world, the country's Finance Minister Bakhyt Sultanov said at a briefing at the Central Communication Service under the president of Kazakhstan on Feb.11.
"This measure is a result of the processes that take place in the world, particularly in neighbouring Russia that carried out the devaluation of the rouble in late 2013 and all this makes our goods cheaper within the integration processes," the minister said.
An analysis was conducted that showed the devaluation will affect the revenue of Kazakh exporters, according to the minister.
Sultanov believes that receipt of the tenge to the state budget will increase, but there will also be expenditures for payment in currency for Kazakhstan's foreign debt and for relations with foreign financial institutions.
The devaluation will affect the increase of prices for many goods including food products as there is an increase of prices for import products, according to Sultanov.
"We believe that the impact of devaluation on the price hike for products will be kept within seven to eight percent," the minister said.
At the same time this will not affect the budget and social payments, according to the minister.
Sultanov recalled that the devaluation conducted in the country in 2009 didn't have a serious impact on the price hike for goods.
The Kazakh National Bank decided to stop maintaining the exchange rate of the national currency tenge at a previous level, to reduce the volume of foreign exchange interventions and to reduce interference with the process of formation of the tenge exchange rate, the bank said on Feb. 11.
"The National Bank expects that the new level of the exchange rate will be about 185 tenge per dollar," the bank said.
The official rate of the National Bank was at 155.5 tenge per dollar on February 11.
Translated by L.Z.
Edited by S.M.