Beijing Broadcasting Network, Beijing, February 12 (Reporter Chai Hua) According to the Voice of China, “Central News” reported that the National Bank of Kazakhstan has announced that it will depreciate its legal currency to cope with the possible withdrawal of hot money.
The National Bank of Kazakhstan announced yesterday that in order to ensure the stability of its financial market and economic situation, it decided to implement a depreciation policy for the country’s legal currency. Since yesterday, Tenge has depreciated sharply. The exchange rate of the US dollar against Tenge has been adjusted from 1 to 155.5 to 1 to 185, and the depreciation has reached 19.3%.
In 2008, the international financial crisis forced the Kazakh government to spend billions of dollars to repair the economy and help its large banks. Therefore, this time Kazakhstan is also painstaking and will act in advance to avoid greater losses.
The National Bank of Kazakhstan criticized the Fed’s monetary policy in the announcement, arguing that the Fed began to reduce the quantitative easing policy, and that funds flow from developing countries to developed countries, putting pressure on emerging market currencies. In order to prevent large-scale speculation in foreign exchange, they allowed the firm to depreciate.
Some market participants said that Kazakhstan has continuously increased its import volume in the near future. Objectively, it also needs the depreciation of Tenge to maintain the balance of imports and exports. In addition, the Russian ruble exchange rate has continued to decline since last year, which is also an important reason for the depreciation of this tenge.
However, since Russia is a trading partner of Kazakhstan, the depreciation of the tenge is conducive to normal trade between the two countries. Therefore, the National Bank of Kazakhstan emphasizes that the current reserves of banks and foreign exchange points in the country are very sufficient, and the general public can be assured in this regard.
Responsible Editor: Liu Yang