Kazakhstan's chief banker forecasts oil price increase and tenge strengthening

ASTANA. KAZINFORM Oil price will rise in three or five years and tenge will strengthen, Chairman of the National Bank of Kazakhstan Kairat Keilmbetov said at a meeting with journalists in the Majilis today.

"Normally, any economy adapts to a new course and a new monetary policy in 6-12 months, after the transition to the inflation targeting regime," said he. "Tenge's fate depends on some factors. One of them is oil price, as you know. If it remains at USD 50 per barrel, the rate of tenge will not change. On the contrary, if oil price drops and neighbor economic are in recession, then our floating tenge rate will let us adequately respond to such shocks. Oil price will rise in three-five years and tenge will strengthen correspondingly," added Kelimbetov. According to him, today's tenge rate (KZT 277 per a U.S. dollar) fully satisfies the country's economy.