National Bank Remains Committed to Ensuring Price Stability, Says Governor

ASTANA – Kazakhstan’s National Bank remains committed to its primary mandate of ensuring price stability, aiming to alleviate pro-inflationary pressures and maintain inflation close to the medium-term target of 5%, Governor Timur Suleimenov said at a Sept. 28 meeting with global investors, reported the bank’s press office.

Photo credit: Kazakhstan Today.

“The exchange rate of the tenge will continue to float, allowing the economy to adapt to changes swiftly,” he said.

According to Suleimenov, the future course of monetary policy will align with previously implemented measures and the National Bank’s transparency, consistency, clarity, and predictability policy.

The governor identified a combination of factors that led to a short-term depreciation of the tenge in the past two weeks. One of them is the global strengthening of the U.S. dollar, which index grew 2.5% to the basket of currencies of developed countries in September.

Increased seasonal demand from importers, the decision to lower the base rate, and the suspension by the government of mandatory foreign exchange earnings sales by quasi-state sector entities also collectively caused the weakening of the tenge.

“The increased oil price and the overall state of the Balance of Payments will provide long-term support to the tenge,” Suleimenov noted.

The governor prioritized the National Bank’s activities in effective collaboration with the government to coordinate monetary and fiscal policies and the stable functioning of the domestic financial market for its consistent development.

Suleimenov reiterated the National Bank’s commitment to pursue open and transparent communication with all stakeholders and enhance this endeavor.

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