National Bank explains why it’s not intervening in tenge exchange rate

Tengrinews.kz – Amid the recent rise of the US dollar in Kazakhstan, the National Bank has clarified why it does not plan to intervene in the foreign exchange market.
Deputy Chair Aliya Moldabekova stated that the market is capable of self-correcting, and there are no fundamental reasons for the tenge's recent weakening.

“Market participants understand that there are no serious underlying factors behind the current depreciation. We believe a correction is likely, and the exchange rate will return closer to previous levels. Those who reacted to the panic may incur losses,” she said.

Moldabekova emphasized that Kazakhstan's macroeconomic situation remains stable, with growing investment, economic activity, and oil prices around $70 per barrel.

“In this context, the National Bank has not intervened and does not see the need to interfere with exchange rate formation,” she added.

Currently, the Bank’s role is limited to standard foreign currency sales from the National Fund for budget transfers, and mirror operations involving the purchase of refined gold.

“We only intervene in truly exceptional situations. The last time we did so was in December of last year, when sharp fluctuations in the exchange rate followed aggressive anti-Russian sanctions, a strengthening US dollar, and falling commodity prices. These factors are not present now,” Moldabekova explained.

She added that the National Bank continues to coordinate foreign exchange operations with the government to ensure adequate liquidity.

“We will continue to monitor the FX market closely and reserve the right to intervene if there is significant volatility or a lack of liquidity,” she concluded.