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Tenge devaluation negatively affects sphere of services

29 June 2016 17:07 (UTC+04:00)
Tenge devaluation negatively affects sphere of services

By Nigar Abbasova

Devaluation process of the tenge, national currency of Kazakhstan, has negatively affected the country’s sphere of services. The process deteriorated conditions of income generation, finprom.kz reports.

The volume of proceeds of companies engaged in the sphere of services decreased twofold and totaled 900 billion tenge ($ 587 billion) in 2015.

Meanwhile, the enterprises saw increase in the volume of expenditures due to negative effects of the national currency weakening. The enterprises were forced to up the volumes of non-operating revenues.

The share of non-operating revenues currently hits its maximum rate for the past 5 years and amounts to 18 percent of the total revenues of enterprises.

Revenues from the sphere of financing amounted to 1.2 trillion tenge ($ 0.7 trillion) which is 408 billion tenge ($ 313 billion) higher than the rate shown in 2014. Other incomes increased by 1.2 trillion tenge ($ 0.7 trillion) reaching the level of 3.6 trillion tenge ($ 2.3 trillion).

Net loss of the enterprises engaged in the sphere of services totaled 2.6 trillion tenge. The volume of loss of large and middle organizations amounted to 2.4 trillion tenge ($ 1.5) while small enterprises faced a loss of 136 billion tenge ($ 88.7)

The value of the Kazakh national currency began to decline after the National Bank of the country switched into the floating exchange rate in August 2015. The devaluation process of the national currency was triggered by low oil prices. As a result the exchange rate of the currency dropped half against the U.S. dollar during six months. In January 2016 the currency faced its bottom-line level at the rate of 383.91 of the USD.

The official exchange rate of the US dollar and euro to Kazakh tenge was set at 339.12 tenge and 376.19 tenge respectively on June 29.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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