Kazakh national currency to be subject to insignificant volatility

Business Materials 4 July 2018 16:14 (UTC +04:00)

Baku, Azerbaijan, July 4

By Leman Zeynalova - Trend:

The national currency of Kazakhstan, the tenge, will be subject to insignificant volatility depending on external factors, Chairman of the National Bank of Kazakhstan Daniyar Akishev said, Kazakh media reported.

He noted that in conditions of a floating exchange rate, the exchange rate of the tenge fluctuates.

He said that the tenge rate can decrease, as well as increase.

“We have repeatedly said that the tenge rate depends on many factors, both internal and external ones,” he added. “To internal factors, we attribute domestic demand to foreign currency on the part of the population and enterprises, as well as the peculiarities of the balance of payments.”

He noted that from the point of view of internal imbalances there are no risks for the tenge rate, adding that however, external factors are not stable.

Nevertheless, Akishev noted that oil prices are at a stable level, which implies significant support for the tenge rate.

In August 2015, Kazakhstan devalued the tenge and switched to inflation targeting. For 2015, the tenge lost about 45 percent of its value.

At the end of January 2016, the exchange rate of the tenge against the US dollar hit the record low and stood at 383.23 tenges/$1.


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