The National Bank of Kazakhstan is ready to intervene to support the tenge

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

“The National Bank is monitoring the domestic foreign exchange market. If current trends continue, the National Bank is ready to react quickly with monetary interventions to restore the fair formation of the exchange rate, the normal functioning of the foreign exchange market and prevent risks of sharp fluctuations in the national currency. exchange rate,” Moldabekova said in the bank’s press service.

Moldabekova said there was increased volatility in global financial markets, associated with the results of the US presidential election. “Donald Trump’s victory has led to the strengthening of the US dollar and the weakening of currencies of developing countries, including the tenge,” he said.

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

“As we have repeatedly said, the National Bank does not react to changes in the exchange rate of the national currency based on fundamental factors. However, we are forced to point out that the tenge fluctuations observed in recent days are not solely due “For fundamental reasons, the National Bank considers the volatility observed in the exchange rate of the national currency excessive,” he said.

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

The official exchange rate on November 12 is 492.65 tenge to 1 dollar. On November 13, according to the current procedure for determining the official exchange rate, it will be 494.95/$1.