By Aynur Karimova
The depreciation of Kazakhstan's national currency, the tenge, after the abolition of the currency corridor has put additional pressure on the balance sheets of the country's banks, but the entire market implements prudential and other regulations, and the situation in the banking sector is under control.
This remark was made by the Deputy Chairman of the National Bank of Kazakhstan, Kuat Kozhahmetov at a press-conference in Almaty on September 9.
"Of course, change of course has put additional pressure on their balance... I assure that there is no problem with any particular bank, and the situation is under control," he noted.
The official also said that the conducted stress tests showed that "the adequacy of the capital is good." For several months the National Bank has developed a package of legal acts aimed at facilitating conditions for banks in the current economic situation.
Economic processes taking place in the world, fluctuating oil prices, and the devaluation of the Chinese yuan by 4.6 percent in particular, has forced Central Asian countries to depreciate their national currencies.
The weighted average rate of tenge fell to 255.26 tenge per dollar from 188.38 tenge for the first trades on the Kazakhstan Stock Exchange on August 19. Then on the following day, Kazakh Prime Minister Karim Massimov announced that Kazakhstan had launched a new monetary policy based on a free-floating tenge and canceled the currency corridor.
Kazakh National Bank sees increase in gross international reserves
Kazakhstan's National Bank has been increasing its gross international reserves the third month in a row, Ranking.kz analytical service reported.
The cumulative growth in June-August amounted to $351 million. In August, gross reserves increased by $108 million, in July - by $86 million, and in June - by $157 million. The increase for the year (August 2014-2015) amounted to $1.34 billion.
The total volume gross international reserves of the bank amounted to $29 billion by the end of August.
Aynur Karimova is AzerNews’ staff journalist, follow her on Twitter: @Aynur_Karimova
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