President Nazarbayev instructed National Bank to continue explanatory work on currency exchange rate situation

President Nazarbayev instructed National Bank to continue explanatory work on currency exchange rate situationHead of State Nursultan Nazarbayev held a meeting with Chairman of the Board of the National Bank of Kazakhstan Daniyar Akishev, the press service of the Akorda informs.

D. Akishev reported the Head of State on the present activity of the National Bank, key directions of the monetary policy and on the situation in the financial market of the country.

The President of Kazakhstan drew attention to the necessity to take measures on ensuring stability in the internal currency market, development of the banking system of the country and stimulation of the extension of business loans by second-tier banks.

Nursultan Nazarbayev also emphasized the importance of continuation of the work on explaining of the situation regarding the currency exchange rate.

“The decision on transferring to the floating exchange rate was right. However, there was a swing in the exchange rate recently, and we have to explain people the reasons of it,” the Head of State said.

In turn, the Chairman of the National Bank pointed at some factors that played a role in the weakening of the Kazakh tenge against the US dollar.

“The price for oil grew from 27 to 52 US dollars in the first six months of the year. However, the price dropped by 15% in July, from 52 to 42 US dollars. The situation is similar in the other oil exporting countries. Tenge weakened by 4.2% in July. We think this is within the norm. The situation is stable now. There are no reasons for any future fluctuations now. The fluctuations of the tenge exchange rate, which happened in July, will have no impact on the internal economic stability,” D. Akishev said.

Besides, he informed about the work on restraint of inflationary developments in the country.

“The inflation growth has made 5.2% since the beginning of the year. There is confidence that the inflation rate will be within the outlined by the Government corridor – 6-8% by the end of the year,” D. Akishev said.

The Head of State gave a number of specific instructions upon completion of the meeting.