Kazakh tenge depreciates by third
By Laman Ismayilova
The Kazakh tenge weakened by 29.9 percent in 2015 against the exchange rate of 34 countries, while the figure was 25.6 percent in 2014.
In particular, the Kazakh tenge declined by 36.5 percent with regard to the U.S. dollar and 27.2 percent with regard the euro last year.
Significantly depreciating against the Russian ruble and Chinese yuan the Kazakh currency fell by 29 percent and 34.4 percent respectively.
The exchange rate of the national currency was 360,37 KZT/USD on 9 February.
Following the devaluation of the tenge by force of low oil prices and ruble depreciation in 2015, Kazakhstan moved to a floating exchange rate. As a result, the national currency fell by 35 percent in value with regard to hard currencies.
According to ING Bank, Kazakhstan's GDP will be 1.9 percent in 2016 and could hope to increase up to 3 percent in 2017. The expectations of a further recovery are based on the assumption that increase of wages in the public sector will facilitate consumption demand.
Some experts predict that enhanced tenge liquidity and transition to a regime with an inflation target will improve Kazakhstan’s banking sector.
The expected economic growth in 2017 is motivated by the commencement of the production from the Kashagan offshore oil field.
However, further drop in crude prices may leave the situation unchanged.
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