I only learned about tenge devaluation last night: Central Bank Governor
Feb 11. Tengrinews
Devaluation of the tenge, Kazakhstan’s national currency, will have no impact on any decisions related to the much-talked-about entry of the 20 000 -tenge note, Tengrinews.kz reports, citing the country’s Central Bank Governor Kairat Kelimbetov as saying today.
“The devaluation expectations were high (…) The National Bank has been afraid the new 20 000 -tenge bill will spur inflation expectations. No final decision on injecting the new bills into circulation has been made so far”, he said.
Starting from February 11, 2014 Kazakhstan’s Central Bank decided to stop supporting the tenge exchange rate, decrease currency interventions and stop interference with shaping the tange exchange rate, seting a new fluctuations corridor at 185 tenge for USD1 plus/minus 3 tenge.
Central Bank Governor assured that he only learned about the tenge exchange rate on the night of February 11. “There was no information leak from the National Bank. There can’t have been any leaks as we only made the decision yesterday after the Stock Exchange trades were over”, Mr. Kelimbetov said.
Kazakhstan’s Central Bank Governor Kairat Kelimbetov doubts the newly-printed 20 000-tenge-note should be immediately offered for circulation over widely spread expectations of the currency devaluation, Tengrinews reported December 18, 2014.
“The Central Bank is concerned over the new tenge note spurring inflation. Therefore the Bank is studying expediency of introducing the new tenge note. Even if the ultimate decision to offer the new note for circulation is taken this year, the actual introduction of the new notes will only take place next year”, Mr. Kelimbetov elaborated.
“It’s not an idle inquiry (…) prices can go up pushed by high expectations of the currency devaluation. Let’s not hurry”, Mr. Kelimbetov said at a press-conference December 18.
* * *
The new tenge exchange rate is beneficial to the country’s economy: Kazakhstan’s Central Bank Governor
Feb 11. Tengrinews
The new tenge exchange rate is beneficial to the country’s economy, Kairat Kelimbetov, Kazakhstan’s Central Bank Governor believes.
“There are global changes going on. We are not isolated from the rest of the world. That is why we made the decision to change the currency policy to the benefit of Kazakhstan (…) the National Bank in the mid run will be making sure the tenge exchange rate is 185 tenge per USD1”, he said.
“In partnership with the Government, the National Bank will be making sure to maintain the inflation rate at 6-8%. We will make sure prices for essential foodstuffs will not grow (…) the changes will enhance the competitive ability of Kazakhstan-based producers (…) notably those working in agriculture and light industries”, Mr. Kelimbetov believes.
The National Bank will make sure currency exchange outlets don’t try to pursue limit-exceeding profits in the wake of the devaluation. Tough measures will be taken to penalize violators, he said, emphasizing “ the spread in currency exchange transactions should be no more than 2 tenge per each sold or bought US Dollar. Tough measures, including withdrawal of licenses, will be applied to those violating the regulation”, he said.