NBK International Reserves Continued To Decline In November 2016

NBK International Reserves Continued To Decline In November 2016

NBK international reserves amounted to $29.8 billion at the end of November, continuing a decline that began in October, the official website of Halyk Finance reported.

NBK international reserves amounted to $29.8 billion at the end of November, continuing a decline that began in October (-$0.5 billion). While foreign exchange reserves rose slightly by $0.1 billion to $20.1 billion, assets in gold decreased by $0.6 billion to $9.7 billion.

There was a slowdown in decrease of foreign exchange assets of the National Fund (-1.4% mom in November against -4.1% mom in October), which was driven by relative increase in revenue of the National Fund (+17% mom, mainly due to an increase in inflow from direct taxes from the oil sector) and contraction in the transfers to the budget ($0.2 billion in November versus $1.9 billion in October). National fund assets shrank by $0.9 billion, amounting to $61 billion at the end of November.

In September to November, the NBK has not carried out interventions in the foreign exchange market.

Based on IMF data of the composition of the international reserves of the NBK, it is noticeable that the asset quality of NBK reserves has improved considerably during current year and is now close to the 2013 indicators. Thus, the share of predetermined and contingent assets in the international reserves of the NBK by the end of October amounted to 14% against 13% in 2013.

According to the NBK, the decrease in international reserves in November was associated with a decrease in NBK liabilities (closing of open position by the NBK on FX currency swaps with banks of $0.4 billion), and also with the falling gold price. Within currency conversion/reconversion operations carried out regularly by the NBK, the National Bank could have possibly used purchased currency from the National fund for closing swaps with banks, which resulted in a slight increase in foreign currency assets of NBK.

Due to the fact, that the conversion operations carried out by the NBK for the National Fund and quasi-public structures are carried out outside the stock exchange, these operations are net emissions.

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