Speculative investors withdrew $3 billion from Kazakhstan in summer: Gregory Marchenko

For the summer months foreign investment profiteers withdrew a total of $3 billion out of the Kazakhstan’s economy. The money had been invested to Kazakhstan’s instruments in February – May in hope for the tenge appreciation, Gregory Marchenko, Head of the National Bank, told at a press conference September 7. High prices for major Kazakhstan’s exports – oil, metals and grain – were preconditions for the tenge appreciation. Consequently, the National Bank had to buy out foreign currency not to allow the tenge to appreciate too fast. From January to March 2011 the National Bank purchased about $6 billion at the domestic market. Currency interventions in 2010 totaled $2 billion. “In June, July and August virtually all speculative investors withdrew their money (…) Their expectations were not met. The National Bank didn't let the tenge appreciate. In mid-May they stopped investing; mid-July they started to withdrew the money”, Head of the National Bank said.