WEEKLY REVIEW: Adjustment of Kazakhstan's national currency not to affect ordinary people

ASTANA. KAZINFORM - Kazakhstan observes improvement in key indicators of social development. National currency's adjustment will positively affect Kazakh economy's growth.
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The meeting of the board of the Ministry of Labor and Social Protection was held on Monday, February 10. Minister Tamara Duisenova stated the average monthly wage increased by 7.5% and made KZT 108 640 in Kazakhstan in 2013. Slight improvement was observed in many key indicators of social development. Occupation level went up - 95% of working-age population is currently employed. Minister Duisenova also noted the consumer basket in Kazakhstan will be changed every five years in line with the world's best practices. She also suggested suspending work at the enterprises with high death rates. The Kazakh National Bank announced Tuesday its decision to stop maintaining the exchange rate of the national currency tenge at a previous level, to reduce the volume of foreign exchange interventions and to reduce interference with the process of formation of the tenge exchange rate. The new official level of the exchange rate was fixed at about 185 tenge per dollar. Vice Premier - Minister of Finance Bakhyt Sultanov told the Tuesday press briefing the adjustment of tenge will not have negative impact. "In fact, given the adjustment, the nominal amount of the country's GDP will increase," Minister Sultanov added. Minister of Economy and Budget Planning Yerbolat Dossayev, in turn, said Kazakhstan's budget revenues in 2014 will increase by 130.2 billion tenges due to exchange rate differences. The same day Prime Minister of Kazakhstan Serik Akhmetov held a telephone conference at the Government and instructed heads of the central and local agencies to assume measures to stop price hikes, especially prices for essential goods. He visited sales outlets, exchange offices and filling stations in Astana on Wednesday (February 12). The Prime Minister instructed state agencies to monitor the situation in the regional markets and promptly respond to problems on a daily basis. On Thursday, President of Kazakhstan Nursultan Nazarbayev received Prime Minister Serik Akhmetov and Chairman of the National Bank Kairat Kelimbetov. At the meeting in the Akorda presidential residence, the Head of State especially stressed that the decision on the adjustment of Kazakhstan's national currency should not have negative impact on the ordinary people. Minister of Agriculture Assylzhan Mamytbekov told the Thursday briefing of the Central Communications Service the bread prices will not surge due to the adjustment of the national currency. The Kazakh Agency for Regulation of Natural Monopolies and the Ministry of Healthcare pledged no tariff and price hikes as well. At the extended session of the Kazakh Government on Friday, Prime Minister Serik Akhmetov reported the draft State Program of Advanced Industrial and Innovative Development will be submitted for President's consideration in June. The Cabinet was given a number of instructions in the light of the recent adjustment of Kazakhstan's national currency. First and foremost, the Government and the National Bank were instructed to buy out second-tier banks' soured loans. Secondly, a 10% pay rise for civil servants and employees of national companies was suggested. Increased access to finance for SMEs was mentioned by President Nazarbayev as well.

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