▲ Up
 akipress
02:10 16-10-2018
АКИpress CA-News Tazabek Turmush
ADVERTISE WITH US SUBSCRIBE
KazakhstanKyrgyzstanMongoliaTajikistanTurkmenistanUzbekistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
akipress
Kazakhstan ready to intervene as currency rocked by ruble rout
Central Asia | business | 14:47, 10 August 2018 | 1119

AKIPRESS.COM - The National Bank of Kazakhstan said it’s ready to step into the local market to slow the tenge’s slide a day after U.S. sanctions battered the currency of its biggest trading partner, Bloomberg  reports.

The Kazakh tenge slumped to its weakest level since early 2016 on Thursday. The plunge was caused by a two-day drop in the Russian ruble, the central bank said by email.

The National Bank is “ready to conduct interventions designed to smooth significant and destabilizing short-term fluctuations in the tenge exchange rate,” according to the statement. It last intervened in the currency market in October 2017 although the finance ministry sold dollars during the ruble’s rout in April.

Trading volumes jumped to $655 million on Thursday, an eight-fold increase on the amount that changed hands on Wednesday. Traders in the local market said companies and individuals in Kazakhstan are buying dollars on concern that the tenge’s slide would deepen as the U.S. steps up sanctions against Russia.

“When the ruble weakens, locals traditionally start to get scared and companies as well as individuals buy dollars,” said Murat Temirkhanov, an Almaty-based analyst at Halyk Finance. “If the ruble weakens further, the rush to the exit will remain here as well.”

The tenge has plunged 7.2 percent in the past three months, the most among former-Soviet peers, compared with a 4.7 percent retreat for the ruble. The drop can largely be attributed to foreign investors exiting amid an emerging-market sell-off this year after building big positions in 2017, according to Gabriele Foa, an analyst at Bank of America Merrill Lynch.

“Customers and banks were buying dollars expecting it to appreciate,” said Timur Gabasov, Head of Treasury at Bank CentreCredit in Almaty. “Elevated demand may stay for next two or three days.”

LATEST NEWS
17:38 Kyrgyzstan, Georgia hold political consultations17:32 Kyrgyz government to certify child- and youth-friendly towns17:31 Ex-MP Kanybek Osmonaliev accused of bribery acquitted17:30 Portugal hit by 110mph winds as thousands of homes lose power17:28 Hundreds of Kyrgyzstanis stranded in Turkey over plane breakdown17:10 Nicaraguan police arrest protesters, quash anti-government march16:59 Red alert as flash floods kill six in south-west France16:55 Mongolian PM visits MAK's cement and block plants16:46 Mongolian President invites North Korean leader Kim Jong-un to visit his country16:45 Tajik economy receives $5 billion in investments for 5 years16:33 Incheon to help Ulaanbaatar turn dumpsite into forest16:31 2 policemen detained for robbery of Indian citizens in Osh city16:10 $55 mln to be allocated for implementation of 3rd phase of Central Asia Road Links program16:02 European Union, UN Women launch study on assessing costs for expanding early childhood education and care services in Kyrgyzstan15:55 Kyrgyz Ministry of Culture suggests to invalidate law on jubilees, stop financing anniversaries from national budget15:30 5 days off ahead in Kyrgyzstan in November15:06 Kazakhstan state nuclear firm Kazatomprom to list global depository receipts in London15:05 Manas airport hosts plane spotting on occasion of 85th anniversary of civil aviation14:59 400 million soms necessary for restoration of Kyzyl Kiya airport: MP14:55 Financial police transfer 8.8 mln soms to government's anticorruption bank account
© AKIpress News Agency - 2001-2018. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)65-03-06