Kazakhstan sees negative trend in trade operations

26 October 2015 11:56 (UTC+04:00)

By Vusala Abbasova

The Central Asia's biggest energy producer Kazakhstan sees a negative trend in its trade activities, summarizing the first half of 2015.

According to the National Bank of Kazakhstan, the external payments deficit amounted to $2.2 billion in the country, while the trade balance amounted to $7.9 billion of surplus.

Along with it the export of goods amounted to $24.9 billion, while the import made $17.1 billion over the reported period.

The direct foreign investment in the country has also negative balance in amount of $1.3 billion over the first half-year.

Whilst the gross inflow of direct foreign investments amounted to $7.5 billion in the country over the reported period, the net inflow of direct investments made $0.9 billion in Kazakhstan and the net outflow abroad formed with the negative balance of $0.4 billion.

So, the reducing of assets totaled $1.8 billion, while the decrease of liabilities was $1.1 billion.

As the external payments deficit causes the gold reserves of the central bank to reduce in order to maintain the balance of payments, this results in devaluation of the national currency.

Accordingly, Kazakhstan’s reserves, including the gross foreign exchange reserves of the National Bank and the assets of the National Fund in foreign currency, have reduced over January-September of 2015.

As of the end of September, it amounted to $96.1 billion, the National Bank of Kazakhstan reported.

The reserves of Kazakhstan amounted to $102.481 billion at the end of 2014. In late August, they accounted for $97.9 billion report said.

The gross international reserves of the National Bank of Kazakhstan amounted to $28.2 billion at the end of September, while the National Fund assets in foreign currency amounted to $67.9 billion.

At the end of 2014, the gross international reserves of the National Bank of Kazakhstan amounted to $28.9 billion, the National Fund assets were at 73.6 billion dollars.

The current unstable situation in oil prices significantly influenced country's economy, forcing it to implement a range of measures like the shift to a floating exchange rate.

Recently, the International Monetary Fund said that the shift to a floating exchange rate in Kazakhstan will allow the country to absorb external shocks, protect international reserves, and remain competitive.

Currently, the country is preparing for the consequences of an upcoming crisis, about which President Nursultan Nazarbayev recently warned.

In his opinion, Kazakhstan will face with the real crisis, which will be more severe that the one in 2007-2009.

Therefore, Kazakhstan’s government is analyzing and creating an anti-crisis plan to determine the necessary measures required by presidential decree to provide people with proper living standards in times of crisis.

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