Arab Today, arab today kazakhstan free floats its currency causing 20 devaluation
Last Updated : GMT 01:38:25
Arab Today, arab today
Arab Today, arab today

Kazakhstan free floats its currency, causing 20% devaluation

Arab Today, arab today

Arab Today, arab today Kazakhstan free floats its currency, causing 20% devaluation

Kazakh Currency Loses Quarter
Astana - XINHUA

Kazakhstan's currency, the tenge, has lost more than 20 percent of its value Thursday after an unexpected government announcement to free float its currency, according to Kazakhstan's national news agency Kazinform.

"The new economic policy of the country amid fundamental negative changes in the global economy requires the adoption of a new monetary policy to ensure a balance between the economic growth and stability of prices," Kazakh Prime Minister Karim Masimov said.

"This policy will be based on inflation targeting and transition to free floating of the exchange rate," Masimov said.

The market responded immediately with the tenge's exchange rate falling from 196 per dollar to 255 per dollar soon after the announcement, though one day earlier Kazakhstan's central bank widened the trading band of the tenge, allowing it to devaluate about 5 percent from about 187 per dollar.

The central bank said the change in the currency exchange mechanism means that Kazakhstan's economic policy would from now on be based on inflation targeting.

"This is a transition to a free floating rate and lets the market itself determine a balanced exchange rate on the basis of demand and supply," Central Bank Governor Kairat Kelimbetov said.

Apart from inflation targeting, Masimov said the change of the tenge rate will also depend on the condition of the world economy.

Masimov pointed out that Kazakhstan's economy has gotten used to a global market where the prices of oil and raw materials are constantly on the rise, which is no longer the case.

He said Kazakhstan must adapt to the new situation in the global market where the oil price will remain low for at least the next five to seven years.

Analysts believe that the tenge's sharp devaluation is a response not only to the falling oil price, but also to the devaluation of the currencies of its major trade partners, Russia and China.

Russia's ruble has decreased by more than 40 percent in the past year, during which Kazakhstan's tenge only lost about 7 percent.

The exchange rate had taken a toll on Kazakhstan's local producers as the country's Ministry of National Economy registered a 40 percent fall in exports between January and July.

China also slightly devaluated its RMB earlier, which may also add pressure to Kazakhstan's trade.

Though allowing a free floating currency, the Kazakh government also voiced its determination to avoid any instability.

Kelimbetov said the central bank will introduce measures to ensure that ordinary people, businesses and banks will adapt to this new monetary policy.

"We believe that we are at a quite smooth and gradual transition. But this is not a painless process," he said.

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 kazakhstan free floats its currency causing 20 devaluation Arab Today, arab today kazakhstan free floats its currency causing 20 devaluation

 



Arab Today, arab today
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Top Yemen commander killed

GMT 09:55 2017 Wednesday ,22 February

Top Yemen commander killed
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 20:52 2017 Tuesday ,21 February

Asia stocks consolidate recent gains; China shines

GMT 10:37 2017 Tuesday ,21 February

Most Asia markets up as rally presses ahead

GMT 05:34 2017 Tuesday ,21 February

7 firms to list on 2nd Saudi stock board

GMT 19:53 2017 Monday ,20 February

Large stocks fall pushing down Nairobi bourse

GMT 18:36 2017 Monday ,20 February

Heavy selling drags Oman shares lower

GMT 06:16 2017 Monday ,20 February

Bank shares lift Tadawul
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today 63-Year-Old Woman Delivers Baby

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Janat pleased for issuing 'Good Morning'

GMT 06:41 2017 Monday ,20 February

Janat pleased for issuing 'Good Morning'
Arab Today, arab today Small ponds have outsized impact

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 06:34 2017 Sunday ,19 February

Ahmed Fahmy stresses he did not ignore singing

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection

GMT 14:06 2017 Friday ,17 February

London to tax old cars

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 05:15 2017 Tuesday ,21 February

Omega 3 can reduce asthma cases

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
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