Central Bank Governor on possible second wave of currency devaluation

Kazakhstan’s Central Bank Governor Kairat Kelimbetov commented on rumors related to a possible second wave of devaluation of the tenge, Kazakhstan’s national currency, Tengrinews.kz reports.

“There are no expectations of any further devaluation (…) all possible speculations are mere rumors. For the 5 years – from 2009 to 2014 – rumors have emerged on average 13 times a year, triggered by speculators (…) there is no ground for the tenge depreciation; oil prices are high; Russia’s rouble is on the rise. Even if the latter faces a certain devaluation, it is no frightening factor for Kazakhstan. I believe we have a sufficient margin of safety”, he told a briefing at the President’s Service for Public Communications.

Last week following a slight change in the tenge exchange rate against the US Dollar Kazakhstan’s citizens started to massively purchase US Dollars.

Tengrinews.kz reported earlier that starting from February 11, 2014 Kazakhstan’s Central Bank decided to stop supporting the tenge exchange rate, decrease currency interventions and stop interference with shaping the tenge exchange rate. The new exchange rate at the time of the devaluation was expected at 185 tenge for 1USD (up from 155 tenge for 1 USD).