Should We Expect a Weakening of the Tenge by Year-End — Opinion of the National Bank

The regulator does not see prerequisites for a surge in the dollar exchange rate before autumn

Apart from seasonal factors, there are no fundamental reasons for the weakening of the national currency at present, said the Chairman of the National Bank of Kazakhstan in the corridors of the Mazhilis, Kazinform reports.

According to SULEIMENOV, the regulator does not see fundamental or market prerequisites for a surge in the dollar exchange rate before autumn.

At the same time, the head of the National Bank noted that during the summer period the tenge traditionally experiences seasonal pressure. This is due to the start of the vacation season and increased demand for foreign currency from both the population and businesses.

“The same seasonality is present in the dollar exchange rate: in summer people buy currency for vacations, and so on. In addition, large companies purchase foreign equipment to implement projects during the construction season. Therefore, in summer and autumn demand for the dollar is always higher,” he explained.

For this reason, at the beginning of the year the dollar exchange rate usually decreases, and closer to the middle and end of the year it begins to gradually rise.

“We believe that this trend will continue this year as well, but no sharp or extraordinary changes are expected. Within the framework of established historical values. There will be no sharp increase,” Suleimenov concluded.

Photo: Viktor Fedyunin / Kazinform.

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