Dollar tops 550 tenge: National Bank steps in

Tengrinews.kz - The National Bank of Kazakhstan has launched foreign exchange interventions in response to the weakening of the tenge.
According to the National Bank, the dollar climbed as high as 550 tenge during trading on July 30. Since the beginning of the month, the national currency has depreciated by 5.8 percent, and by 4.7 percent since the start of the year.
The regulator attributed the tenge’s decline not to economic fundamentals, but to low market liquidity and speculative pressure. To prevent sharp fluctuations, the National Bank has entered the market with currency interventions.
Despite the depreciation, the central bank emphasized that the country’s economic fundamentals remain stable: oil prices are holding above $70 per barrel, and the U.S. dollar is weakening globally.

“In this context, the current depreciation of the tenge does not reflect fundamental factors and indicates that the national currency is undervalued,” the bank stated.

The National Bank said it will continue monitoring the situation closely and is ready to act quickly if needed.

“If necessary, the bank is prepared to take prompt action to prevent destabilizing exchange rate volatility, restore the balance of supply and demand for foreign currency, and ensure the smooth functioning of the FX market,” the statement said.

Earlier today, July 30, the exchange rate of the dollar surpassed 550 tenge in currency exchange offices. By noon, it was selling for 549-550 tenge in Astana and 549-551 in Almaty. Buying rates were around 542-543 tenge in Astana and 547-548 in Almaty.