Views Article – Sharenet Wealth

Asia, Forex

Kazakh president orders exchange rate policy studies

NUR-SULTAN, July 15 (Reuters) – Kazakh President Kassym-Jomart Tokayev ordered the central bank on Monday to look into ways of improving public confidence in its exchange rate policy by carrying out fresh studies together with international bodies.

He did not make clear whether he was referring to a possibility of abandoning the floating exchange rate regime which the oil-exporting nation has maintained since 2015 when it stopped supporting a dollar peg for the tenge.

“…The central bank should take measures to increase the transparency and confidence of the population and businesses in the exchange rate policy that it carries out,” Tokayev told a meeting of senior officials.

“…The financial community will need to study this matter together with acknowledged international organisations and experts and figure out which regime meets our objectives to the greatest extent.”

Tokayev ordered the central bank and the government to report on the matter by Nov.1.

His comments followed a fresh bout of tenge volatility this month when it hit its lowest level against the dollar in three-and-a-half years, a move some market players attributed to retail demand driven by psychological factors. (Reporting by Tamara Vaal Writing by Olzhas Auyezov)

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