One of the three reasons for this currency collapse is the weakening of the Russian ruble, the government explained.
Kazakhstan’s currency fell to a record low of 530 tenge to the dollar, despite the central bank spending more than $1 billion on interventions over the past two weeks.
Kazakhstan’s central bank said demand for the dollar strengthened after the tenge crossed the “psychological level” of 500 per dollar following a fall in the Russian ruble, the currency of Kazakhstan’s second-largest trading partner.
Deputy Prime Minister and Minister of National Economy Nurlan Baybazarov said in an emergency briefing on December 2 that the fall of the tenge was caused by three factors.
The first factor is the global strengthening of the dollar index in recent months. The second, according to Baybazarov, is associated with a slight decrease in world oil prices.
“Since Russia is our main trading partner, fluctuations in the ruble can affect the tenge exchange rate,” the official explained.
We remind you that the Russian ruble has fallen by more than 24% since the beginning of August, when its collapse began. New US sanctions against Russian banks led to further falls in the ruble.
The fall of the ruble increases the pressure on the Bank of the Russian Federation to raise the key rate – media
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.