Kazakhstan Tenge Devalued by 35,5% and Moved to Free Floating Exchange Rate

Kazakhstan’s tenge lost 35,5% of the cost after the decision to move to a floating exchange rate, according to RBC. The average rate of the tenge against the US dollar in trading on Kazakhstan Stock Exchange (KASE) decreased by 66.88 tenge and was 255.26 tenge / dollar.

The trading volume amounted to $ 115.55 thousand. The trade was attended by 25 banks. The official exchange rate for August 20 was 188.38 tenge per $ 1.

According to the local branch of Radio Liberty, yesterday the dollar value of sales in the commercial banks and exchange networks increased from 189 to about 198 tenge.

Kazakhstan from August 20 moved to a floating exchange rate of the tenge. As stated by Prime Minister Karim Massimov, the tenge exchange rate will be determined by the situation in the world economy and the domestic foreign exchange market. He said that the National Bank will not intervene in the formation of the market level of the exchange rate of the tenge, but it reserves the right to participate in the domestic foreign exchange market through foreign exchange intervention.

According to RBC, yesterday the Kazakhstan President Nursultan Nazarbayev urged to prepare for oil prices at $ 30-40 per barrel. He noted that in the coming years, developing countries' access to investments and capital will be limited, and also admitted that the market for Kazakhstani products shrinks due to weak demand from Russia and China. -0-