Kazakh National Bank holds foreign exchange intervention to stabilize national currency

The National Bank of Kazakhstan held the foreign exchange intervention in the amount of $144 million for the stabilization of the national currency, tenge, said the message of the National Bank of Kazakhstan.

The message said that the decision to conduct currency interventions is due to the increased volatility of the exchange rate of tenge, which is due to speculative operations of participants of the currency market in the absence of objective and significant changes in fundamental macroeconomic factors.

On August 20, the National Bank of Kazakhstan in order to ensure the implementation of a new monetary policy canceled the exchange rate corridor of the national currency, tenge, and switched to inflation targeting and a free floating exchange rate. As a result, the tenge exchange rate against the dollar has fallen by 26 percent.

“The exchange rate of the tenge is based on the fundamental internal and external macroeconomic factors,” said the message. “At the same time, the National Bank does not interfere with the formation of the market level of the exchange rate of tenge, but reserves the right to participate on the domestic foreign exchange market through carrying out foreign exchange intervention, if necessary.”

/By Trend/