Kazakhstan expands Tenge to US Dollar exchange rate corridor10 september 2014, 16:59
The central bank of Kazakhstan has expanded the Tenge to US Dollar pegged corridor from 6 tenge to 18 tenge, Tengrinews reports.
National Bank Governor Kairat Kelimbetov made the announcement in Astana today.
"The decision to change the corridor has been taken literally today. It will be effective as of tomorrow," Kelimbetov said. The Bank has expanded the pegged corridor from the existing 185 tenge per dollar +/-3 tenge range to 185 tenge per dollar +3/-15 tenge.
Kazakhstan keeps the exchange rate of its currency in managed float - in a pegged corridor.
The Governor first mentioned the plan to enlarge the pegged corridor last week. He then explained that the expansion would serve to bring the tenge to dollar exchange rate to 181 or even 179 tenge per 1 US dollar, even went as far as assuming that the rate may eventually go down to 170 tenge per 1 US dollar.
For more details on the national currency policies in Kazakhstan and expansion of the exchange rate corridor, please read Devaluation vs Revaluation of Tenge at Tengrinews.
By Dinara Urazova