National Bank of Kazakhstan ready to intervene to support tenge

National Bank of Kazakhstan ready to intervene to support tenge

ASTANA. November 12 (Interfax) – The National Bank of Kazakhstan is ready to intervene in the foreign exchange market to support the tenge, National Bank Deputy Governor Aliya Moldabekova said.

“The National Bank monitors the domestic currency market. If current trends continue, the National Bank is prepared to respond quickly with currency interventions to restore fair exchange rate formation and normal functioning of the foreign exchange market and prevent the risk of sharp fluctuations in the national currency. exchange rate,” Moldabekova is quoted by the bank’s press service.

Moldabekova said there had been increased volatility in global financial markets in connection with the results of the presidential elections in the United States. “Donald Trump’s victory led to the strengthening of the US dollar and the weakening of developing countries’ currencies, including the tenge,” she said.

Moreover, as of November 11, there has been a moderate decline in oil prices, from $74-75 to $71.83 per barrel.

“As we have repeatedly stated, the National Bank does not respond to changes in the national exchange rate based on fundamental factors. However, we are forced to note that the fluctuations of the tenge observed in recent days are not only caused by fundamental reasons in this regard, the National Bank considers the observed volatility of the national exchange rate to be excessive,” she said.

The average weighted exchange rate of the tenge against the dollar on the Kazakh stock exchange weakened by 0.5% or 2.3 tenge on Tuesday from Monday to 494.95 tenge.

The official rate on November 12 is 492.65 tenge per $1. On November 13, based on the current procedure for determining the official rate, this will be 494.95/$1.