Arab Today, arab today kazakh currency falls 23 after switch to freefloat
Last Updated : GMT 06:43:17
Arab Today, arab today
Arab Today, arab today

Kazakh currency falls 23% after switch to free-float

Arab Today, arab today

Arab Today, arab today Kazakh currency falls 23% after switch to free-float

Kazakhstan's Prime Minister Karim Massimov
Astana - AFP

Energy-rich Kazakhstan's currency nosedived some 23 percent on Thursday after authorities shifted to a free-floating exchange rate as the Central Asian nation battles to cope with lower oil prices.

The Kazakh tenge's plunge to over 257 to the dollar sparked jitters across the country as flustered shopkeepers and foreign exchange workers struggled to cope with the sudden change.

Kazakhstan's Prime Minister Karim Massimov announced at a government meeting Thursday that authorities were abandoning a currency band for a free-floating exchange rate amid bleak price forecasts for crude oil, Kazakhstan's linchpin export.

"The National Bank and the government have decided to implement a new monetary policy from August 20, 2015 based on an inflation-targeting regime," Massimov said.

Widely viewed as a success story in decaying post-Soviet Central Asia, Kazakhstan has appeared under intense economic strain ever since the national bank ordered a shock 20 percent devaluation against the greenback last year.

The ex-Soviet nation's 75-year-old President Nursultan Nazarbayev said Wednesday that future economic planning in the country should be adjusted to assume oil prices at $30-40 per barrel and that belt-tightening measures would also affect showy national projects.

Oil prices slid to a new six and a half year low in Asia Thursday, approaching the key $40 a barrel level after a surprise rise in US inventories added to concerns of a supply glut.

In addition to slumping prices for crude, which accounts for half of Kazakhstan's export, the national economy has been hit by falling demand in two key foreign markets, Russia and China.

China last week devalued its yuan currency penalising natural resource exporters across the world.

The slide of the Russian ruble -- which on Thursday slipped to 75 against the euro for time in six months -- has also taken its toll on Kazakhstan, resulting in cheaper Russian products flooding the domestic market.

- Shops shut -

Analysts said some investors had been waiting a long time for the devaluation of the national currency but that it had still sparked turmoil in the retail sector.

"For some foreign investors this move is long-awaited," Tulegen Askarov, president of the Biz Media business journalism centre in Almaty, the country's largest city, told AFP.

"For small and medium-sized businesses it has created uncertainty. Some car dealers are shutting up shop temporarily."

Russian bank VTB Capital noted Thursday that the latest measures were understandable since "despite gradual widening" of the tenge-dollar spread last month, the tenge "still remained overvalued," especially in the context of the battered ruble in neighbouring Russia.

In Almaty few people dared to enter foreign exchange bureaus as they waited to see what the tenge would do next.

"Everything I do is connected to the national currency: study, travel," said Zhanar Agatayeva, a 19-year-old student.

"Now I fear my university will force up fees," she said, eagerly watching the rapidly changing figures outside one exchange bureau.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today kazakh currency falls 23 after switch to freefloat Arab Today, arab today kazakh currency falls 23 after switch to freefloat

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today kazakh currency falls 23 after switch to freefloat Arab Today, arab today kazakh currency falls 23 after switch to freefloat

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday