BAKU, Azerbaijan, May 18. European Bank for Reconstruction and Development (EBRD) will be working with Kazakhstan’s authorities to best support the country in difficult macroeconomic environment, the Bank official told Trend.
The Bank noted that Central Asian economies will likely experience significant collateral damage resulting from the war on Ukraine and international sanctions on Russia.
“The first weeks of war resulted in most Central Asia’s national currencies quickly losing value (by about 20 percent in the Kyrgyz Republic and Kazakhstan, by 15 percent in Tajikistan and by 7 per cent in Uzbekistan) – despite increased policy rates and market interventions by Central Banks,” the Bank said.
Overall, the region will be negatively affected through six main channels, the Bank said.
“The situation is fluid and it is simply impossible to tell what is going to happen next but the EBRD is a major investor in Kazakhstan and will be working with the authorities to find best use of the Bank’s resources and experience in a difficult macroeconomic environment,” the Bank added.