Sales of foreign currency at currency exchange outlets on the rise: Central Bank Governor Gregory Marchenko

Sales of foreign currency at currency exchange outlets have been on the rise since the H2 2010, Chairman of the Kazakhstan’s Central Bank Gregory Marchenko told journalists today, July 5. “In January – May 2010 currency exchange outlets sold a combined $2 971.2 million, whereas in the same period of 2011 the figure made up $4 525.8 million”, Marchenko said. According to him, the growing demand for foreign currencies was mostly driven by mass purchases of previously owned cars imported to Kazakhstan: for the period of mild customs duty on previously owned cars imported for personal use from July 1,2010 to July 1, 2011 Kazakhstan’s citizens imported a total of 167 863 previously owned vehicles. Starting from July 1, 2011 customs duties on foreign vehicles imported to Kazakhstani are levied in accordance with duty rates accepted in the Customs Union of Kazakhstan, Russia and Belarus. For previously-owned vehicles of 5 years old and older, the duty rate will be Euro 4 per cubic centimeter for engines of 1800-3000 cubic centimeters. Consequently, customs duty on an engine of 3000 cubic centimeters will make up Euro 12 000, with VAT standing at 12%. For cars of 5 years old and older with an engine of over 3000 cubic centimeters, the duty rate will stand at Euro 5.8 per cubic centimeter. Consequently, customs duty on an engine of 4000 cubic centimeters will make up Euro 23 000, with VAT standing at 12%. Before July 1, customs duties made up Euro 0.35-0.6 per cubic centimeters, depending on the engine.