Kazakh national currency is strong enough

Business Materials 18 November 2014 19:26 (UTC +04:00)
Kazakh national currency KZT is strong enough, despite the negative impact from the outside

Baku, Azerbaijan, Nov.18

By Elena Kosolapova - Trend:

Kazakh national currency KZT is strong enough, despite the negative impact from the outside, the Ministry of National Economy of the country told Trend Nov.18.

"The adopted currency corridor of 170-188 KZT/$1 provides a comfortable state of the national currency, in spite of the continued weakening of the Russian ruble," the ministry said.

The high degree of integration of the financial systems of Russia and Kazakhstan, and economic sectors of the two countries predetermines the dependence of the exchange rate of KZT on the dynamics of the Russian ruble, the ministry said.

However, during the currency adjustment in February by the National Bank of Kazakhstan jointly with the government as a whole possible economic changes have been considered, including the reduction of world oil prices and the depreciation of the Russian ruble.

Thus, since early 2014 until late October, the Russian ruble exchange rate depreciated by 22.9 percent in nominal terms - from 33.1 to 40.7 Russian ruble, exchange rate of KZT decreased by 17.8 percent - from 154,1 to 181,5 KZT, according to the ministry. On the results of late August 2014 compared to December 2013, KZT exchange rate in real terms has weakened by 12.6 percent, while the Russian ruble decreased by 5.8 percent.

"Thus, the rate of KZT against the US dollar has improved its competitiveness in comparison with the rate of the Russian ruble against the US dollar," the ministry said.

In February 2014, the National Bank of Kazakhstan made a devaluation of KZT. As a result, US dollar increased by 19 percent against KZT.