Kazakhstan spends $367.5 million for forex intervention

9 October 2015 10:14 (UTC+04:00)

By Vusala Abbasova

The National Bank of Kazakhstan has spent $367.5 million on foreign exchange intervention since the beginning of October 2015.

The Bank reported that these measures were needed in order to support the national currency, tenge.

The National Bank of Kazakhstan conducted foreign exchange intervention on trading of Kazakh Stock Exchange JSC in the amount of $119.9 million on October 1.

On October 2, foreign exchange intervention of the National Bank of Kazakhstan amounted to $106.5 million.

Foreign exchange intervention of the National Bank of Kazakhstan amounted to $54.5 million on October 5, $20 million on October 6 and $66.6 million on October 7.

Earlier, the National Bank of Kazakhstan continued its foreign exchange interventions at the auction of Kazakhstan Stock Exchange JSC in the amount of $225 million on September 30, in order to carry out foreign exchange intervention to stabilize the national currency, tenge.

The Bank, with the aim of ensuring the implementation of a new monetary policy, canceled the currency corridor for the tenge’s rate and switched to an inflation targeting and free floating exchange rate on August 20.

As a result, the tenge’s rate against the USD fell by 26 percent.

In mid September, the National Bank of Kazakhstan said that it started to hold the foreign exchange intervention due to the increased of volatility of the exchange rate of tenge, which is due to speculative operations of participants of the currency market in the absence of objective and significant changes in fundamental macroeconomic factors.

As a result of currency interventions, the tenge rate has increased from nearly 300KZT/1USD in mid-September to 270.89KZT/1USD as of October 1.

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