Photo: zakon.kz
The National Bank of Kazakhstan has decided to implement currency interventions following the decline of the tenge's exchange rate against the dollar. This was reported on the regulator's official website.
The National Bank notes that the U.S. dollar has surpassed the 500 tenge mark, with trading occurring in the range of 518-519 tenge per dollar. The weighted average rate as of November 28 is 512.58 tenge per dollar, with Kazakhstan's currency weakening by 2.4% since yesterday.
According to the regulator, both external and internal factors are negatively impacting the exchange rate. These include the global strengthening of the dollar, changes in commodity prices, and the escalation of geopolitical tensions worldwide.
«A strong dollar is traditionally a negative factor for commodities. Additionally, there is increased volatility in oil prices, as well as pessimistic sentiment due to economists' expectations that potential trade tariffs and increased oil supplies from the U.S. during Donald Trump's presidential term will lead to an oversupply,» the statement reads.
The weakening of the Russian currency following new sanctions against Russia's financial sector is specifically noted. This has led to the depreciation of the Russian currency on the Forex market to 15.1 rubles per Chinese yuan and 114 rubles per U.S. dollar.
«The combination of these factors is putting pressure on the tenge exchange rate. During certain trading periods, low liquidity is observed, creating conditions for speculative pressure and disrupting the balance in the foreign exchange market. To prevent destabilizing fluctuations, smooth out excessive exchange rate volatility, and ensure the supply of foreign currency, the National Bank is conducting currency interventions,» the Kazakh regulator concludes.
It is also emphasized that the National Bank is monitoring the situation but does not target any specific exchange rate level and does not impede its trend. Consequently, the formation will continue to be carried out in accordance with fundamental factors. However, the National Bank is prepared to continue currency interventions in case of risks to financial stability and excessive volatility.
