Kazakhstan's Tenge Faces External Pressures, But Free-Float Policy Remains - Tokayev

(MENAFN- Trend News Agency) ASTANA, Kazakhstan, January 3. Kazakhstan is deeply integrated into the global economy, making the national currency - tenge - susceptible to external factors, said President Kassym-Jomart Tokayev in an interview with local media, Trend reports.

He pointed to the strengthening of the US dollar as a significant pressure on the currencies of developing countries. “Many currencies began weakening well before November last year, while the tenge managed to maintain its position for a considerable time,” the president remarked.

Tokayev reiterated the government's commitment to a free-floating exchange rate, which is determined by market dynamics rather than artificial interventions.“We moved away from artificially maintaining the exchange rate long ago. Burning through gold and foreign currency reserves to keep the tenge strong is not a viable approach,” he stated.

While some market participants have called for a shift toward a more managed exchange rate, President Tokayev noted that the National Bank and the Government are exploring all options.“After thorough analysis, it will become clear whether there is a need to adjust our approach,” he said.

The president underscored the importance of focusing on long-term economic resilience, including fostering dynamic growth in the real sector, improving labor productivity, and creating high-quality jobs.

However, Tokayev expressed dissatisfaction with the performance of economic policymakers.“To be frank, I consider the current work of economic leaders to be mediocre. There is too much rhetoric borrowed from international financial institutions and not enough tangible action,” he said. The president called for the involvement of specialists with practical knowledge of regional conditions and hands-on experience in the real economy.

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