Kazakhstan will be affected by US financial troubles, analysts say
August 11. Central Asia Newswire
The economy of Kazakhstan, the largest in Central Asia, will be hard-hit if the United States’ economy tumbles, the Trend news agency Thursday reported regional experts as saying.
“Much is linked with the U.S. dollar in the Kazakh economy. For example, the main export types – oil and metals – are also sold for dollars. Therefore, this currency’s fall will hit all spheres of the economy,” said Alexander Knyazev.
Serik Akhanov, chief of the Kazakh Association of Financiers, said the world will suffer a catastrophe if the dollar falls. But he cautioned not to anticipate or make specific predictions.
The Kazakh stock exchange (KASE) has been one of the worst hit this month as a result of turmoil that has shaken the world’s financial markets in recent days.
The KASE lost around 22 percent of its value between August 1-9 over a ratings downgrade of the U.S. economy as well as Eurozone worries, according to the Bloomberg news agency.
That reduced the value of the Kazakh bourse to about 63 percent of its value in mid-February. The KASE managed to climb back 7 percent Thursday.