Kazakh forex reserves up to $28.7bn in October

By bne IntelliNews November 10, 2015

Gross foreign exchange and gold reserves increased by 1.62% m/m, reaching $28.65bn as of November 1, the National Bank of Kazakhstan (NBK) has announced. Since the beginning of the year, reserves decreased by 1.88%.

The detailed picture shows that gold reserves increased by 3.62% m/m and by 7.95% ytd to $7.983bn. This is a result of both higher global gold prices sparked by political uncertainty, as well as the NBK’s active buying of the precious metal. Gross foreign currency reserves went up by 0.87% m/m to $20.676bn. Since the beginning of the year, the bank's reserves shrank by 5.22%.

At the same time, the reserves of the National Oil Fund slid by 5.95% m/m to $63.882bn. In monetary terms, reserves decreased by around $4bn.

The data indicates that the NBK was mainly spending the National Oil Fund's assets to prop up the tenge after it departed from the free-floating exchange regime in September. According to the NBK's statement from November 5, the central bank spent $5bn on interventions in the market starting from September 16. On November 2, the bank's former Governor Kairat Kelimbetov was replaced with Daniyar Akishev who declared the re-adoption of free-floating exchange regime policy sending the tenge to new lows.

The tenge touched a historical low of KZT312.65 against the dollar in November 9 morning trading, but has since strengthened to KZT306.74 on November 11.

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