National Bank explained expediency of its FX interventions

ASTANA. KAZINFORM "The U.S. dollar's rate against tenge was unreasonably raised. The National Bank intervened in this process and regulated the problem, Vice Chairperson of the Bank Kuat Kozhakhmetov told mass media today after the plenary session of the Majilis deputies.

"I cannot tell you the amount [of the National Bank's FX interventions in the nearest time]. I cannot say also whether tenge rate will remain stable [against U.S. dollar] or not. Everything will depend on speculative sentiments and expectations on the market," Kozhakhmetov said answering journalists' questions.

The Vice Chairperson of the National Bank could not also answer the question about the real tenge rate against the U.S. dollar. "As for FX interventions, these amounts are made public. What was the reason for intervention? The National Bank decided there were too many speculations on the market. The rate of the U.S. dollar soared unreasonably. And the National Bank regulated the situation," he noted. Meantime, Kozhakhmetov disagreed on the definition 'burning through foreign reserves' which the National Bank spends to maintain tenge rate. "Last week the U.S. dollar rate jumped up to 300 tenge and we decided to intervene. Today the rate is 260 tenge per a U.S. dollar. What does "money burning" mean? Currency is sold and tenge is bought. Everything depends on the situation on the market. Such external factors as oil price should not be forgotten too. Almost all countries announced devaluation, for example, Canada and Australia," he concluded.