Kazakhstan slashes the share of Euro in its FX reserves

Against the backdrop of the Eurozone uncertainty the Kazakhstan’s Central Bank has slashed the share of Euro in its currency reserves from 30% to 25%, Newskaz.ru reports, citing the country’s Central Bank Governor Gregory Marchenko as saying. “The share of Euro has been reduced to 25%. So far we don’t plan to further change the breakdown of currencies in the nation’s currency reserves. Last year the share of Euro stood at 30%”, Mr. Marchenko said at a press-conference June 6. He elaborated that “the Euro was replaced with other currencies, rather than with the US Dollar (…) We have expanded the range of currencies”. As of May 1, the nation’s international reserves [including assets of the National Oil Fund standing approx. at $51.6 billion, up from $43.7 at the start of the year] made up $85.9 billion; thus, the National Bank’s gross international reserves stood at $34.3 billion. The National Fund of Kazakhstan was created in 2000 as a stabilization fund that accumulates windfall revenues from oil sales and ensures the economy of Kazakhstan will be stable against the price swings of oil. The assets of the National Fund assets are monitored by the National Bank of the Republic of Kazakhstan. In his latest State of the Nation Address [January 27], President Nazarbayev suggested the National Oil Fund money be used in the form of loans to the national economy rather than kept with foreign banks.