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Kazakh National Bank conducts currency intervention selling $520.6mln

08 October 2018 [16:36] - TODAY.AZ

By Azernews


By Abdul Kerimkhanov

Kazakhstan’s National Bank decided to conduct currency interventions for the first time since October 2017 in order to prevent the strengthening of devaluation expectations and stabilize the domestic foreign exchange market.

Thus, in the period from September 5-7, 2018, in the absence of foreign currency supply, the National Bank sold $ 520.6 million.

The share of the National Bank during these days was about 80 percent of the total trading volume on the currency exchange, but overall for the month the National Bank participation was 13.6 percent.

Press service of the financial regulator stated that in September 2018, the imbalances in the domestic foreign exchange market significantly increased, leading to a weakening of the national currency.

The National Bank of Kazakhstan recommends citizens not to buy foreign currency.

Negative news from world markets, which partially affect Kazakhstan, led to an overreaction of participants in the domestic foreign exchange market and their customers. As a result, an increase in demand for foreign currency was observed against the background of a decrease in its supply.

At the same time, the situation in the global commodity and financial markets developed in different directions.

The global oil market was characterized by an increase in the price, which reached its maximum since December 2014. Financial markets developed under the influence of aggravated trade conflicts and growing tensions between the largest economies in the world.

The U.S. sanctions and protectionist policies, as well as the continuing cycle of rate increases by the U.S. Federal Reserve, have led to a change in the direction of capital flows in favor of developed markets.

The most important external factor that had a negative impact on the domestic foreign exchange market in early September was the weakening of the Russian ruble against the background of geopolitical events.

In conditions of volatility of the exchange rate to the population and organizations in the absence of an objective need for foreign currency, the National Bank recommends to refrain from transferring assets from one currency to another. Buying a currency at the peak of quotes increases the risk of losing savings.

URL: http://www.today.az/news/regions/174655.html

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