Kazakhstan’s Central Bank moves to reduce dollarization of economy

Kazakhstan’s Central Bank plans to reduce dollarization of deposits kept with banks, Kairat Kelimbetov, the country’s Central Bank Governor, told a press-conference in Almaty today. According to the head of the regulator, dollarization tends to be a cyclical problem, “with its rate fluctuating for the recent 5-10 years”. Mr. Kelimbetov emphasized that the Central Bank in partnership with the Government intends to come up with a plan to reduce dollarization of the Kazakhstan’s economy. “We are not content with the current figures. The dollarization figure should be decreased at least twofold”, he said. “I believe we will have a respective program by May 1, 2014”, Mr. Kelimbetov promised, adding that as of the end of 2013 deposits (including those of non-residents) stood at $25 billion (15.7 % up year on year). The share of tenge-denominated deposits decreased from 70.2% back in December 2012 to 62.6% in December 2013.