Kazakhstan's Tenge Faces External Pressures, But Free-Float Policy Remains - Tokayev
Date
1/3/2025 12:09:35 AM
(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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