Kazakhstan announces about devaluation of tenge by 20%
Tashkent, Uzbekistan (UzDaily.com) --
National Bank of Kazakhstan announced about devaluation of national currency – tenge – by 20% on Tuesday, 11 February 2013.
National Bank of Kazakhstan adopted decision to refuse from supporting exchange rate of tenge at the previous level from 11 February 2014, decrease the volume of currency interventions and decrease interference to process of forming exchange rate of tenge, the bank’s statement said.
The bank said that taking into account high importance of the exchange rate for economy of the country, National Bank kept the exchange rate at the level of 145-155 tenge for a US dollar.
The statement said that this helped to achieve economic and financial stability. It said that the GDP of Kazakhstan grew by 6% and inflation reached historic minimum of 4.8%. The bank said Kazakhstan is deeply integrated in the global economy and cannot ignore the current situation on the world financial and commodity markets.
Kazakhstan’s National Bank assumed that the new level of exchange rate will be about 185 tenge per 1 US dollar.
The exchange rate will be formed based on fundamental internal and external macroeconomic factors. The bank said however this does not mean that the National Bank will fully refuse from currency interventions, which will be conducted to ensure financial stability.
“As a result of the exchange rate adjustment, competitive conditions will improve for domestic goods and entrepreneurs working in export and import-substituting spheres of the economy in Kazakhstan,” the statement said.
The news shocked local business. The work of exchange rates was halted. Several car sellers and internet-shops suspended their work.
Electronic Government of Kazakhstan stopped to render paid services due to devaluation of tenge. Local media dubbed 11 February as “Black Tuesday”.