BAKU, Azerbaijan, March 1. The average exchange rate of Kazakh tenge, the national currency of Kazakhstan, amounted to 445.66 tenge per $1 in February 2023, Trend reports, citing the National Bank of Kazakhstan.
Overall, the trade volume on Kazakhstan Stock Exchange during the month increased from $103 million to $130 million (26.21 percent growth).
The foreign exchange market was balanced in terms of supply and demand, and the exchange rate was formed based on market conditions. The sales of foreign exchange earnings by quasi-public sector entities amounted to about $295 million in February.
The share of sales from the National Fund amounted to 23 percent of the total trading volume and never exceeded $30 million per day. The sales were carried out in regular intervals and in small volumes to avoid excessive impact on the market.
The purchases of foreign currency to sustain the level of foreign currency in the pension fund amounted to $226 million. The National Bank projects foreign currency purchases for this purpose to amount to $200-$250 million in March.
The Bank expects geopolitical situation, global markets, and local market participants’ expectations to influence the exchange rate dynamic in short-term.
Despite the economic and political shocks, Kazakhstan’s economy managed to demonstrate resilience. Currently, the most significant issue in front of the National Bank is the high level of inflation, which it combats and expects the inflation peak to subside after 1Q2023
The National Bank is the central bank of the Republic of Kazakhstan. The objective of the institution is to ensure price stability in Kazakhstan, in addition to regulating fiscal and monetary policy.