Kazakh currency slides by 1% in morning trade after central bank reshuffle

By bne IntelliNews November 3, 2015

Kazakhstan’s embattled national currency, the tenge, slid by 1% to KZT282.7 to the dollar in morning trading on November 3. Kazakh President Nursultan Nazarbayev sacked Kairat Kelimbetov as governor of the National Bank, the central bank, on November 2 and replaced him with Daniyar Akishev, acting aide to the president and head of the presidential administration’s socioeconomic monitoring department.

Akishev, 39, is believed to have favoured a sharp devaluation of the tenge, whereas Kelimbetov resisted it, according to the latter’s former adviser, financial analyst Olzhas Khudaybergenov.

Following enormous pressure the low oil price and slowdown in Kazakhstan’s main trading partners – Russia, the EU and China – had put on the tenge, the National Bank announced on August 20 that it had abolished a trading corridor for the tenge’s exchange rate and would allow it to float freely. Afterwards the tenge slumped nearly 30%.

The Kelimbetov-led central bank resumed interventions in the currency market in mid-September to prevent “speculative” operations in the foreign exchange market and is believed to have since spent over $5bn on propping up the tenge.

Related Articles

Hungarian retail investors continue to pile into domestic government bonds

The stock of government bonds held by households rose by HUF154bn (€500mn) September to an all-time high of HUF6.5 trillion, Hungary’s Government Debt Management Agency (AKK) said on October 16. ... more

Ukrainian central bank bans Russian banknotes, coins depicting occupied territories

The National Bank of Ukraine (NBU) has forbidden local banks and the country's financial institutions to perform any cash transactions using the new banknotes and coins issued by the Russian central ... more

Erdogan says he plans talks with lenders on cutting Turkish interest rates

Turkey's President Recep Tayyip Erdogan said on October 13 that he plans to hold talks with both public and private lenders on how to lower interest rates. He did not say, however, when those ... more

Dismiss