ASTANA – Kazakhstan’s gold and foreign exchange reserves reached $44.2 billion as of November, marking an increase of $8.3 billion, or 23.1%, compared to 2023, according to the National Bank of Kazakhstan, reported Kazinform news agency.
Photo credit: National Bank of Kazakhstan
Gold assets account for 57.2% or $25.3 billion. According to the World Gold Council, as of Jan. 6, Kazakhstan held 295.2 tons of commercial gold, placing it 20th globally in gold reserves, between the United Kingdom and Lebanon.
Kazakhstan invests its foreign currency assets in safe and highly liquid instruments such as short-term United States Treasuries, developed and emerging market bonds, and investment-grade corporate securities. Foreign currency portfolios are held in custody domestically and with various global custodians, including central banks and international financial institutions.
Gold assets serve as a buffer against economic and geopolitical shocks, protecting reserves against the depreciation of foreign currency assets. Gold is stored both domestically in Kazakhstan and with foreign banks.
“The National Bank acquires gold from producers and persons who became its owners after processing. This supports the development of the domestic gold mining and processing industry, as well as contributes to the replenishment of gold and foreign exchange reserves,” said the National Bank of Kazakhstan, as quoted by Kazinform.
According to the bank’s deputy governor Aliya Moldabekova, the National Bank is ready to use Kazakhstan’s gold and foreign currency reserves to support the tenge exchange rate. In 2024, Kazakh tenge fell against the dollar, depreciating by 15% over the year. In November, the tenge exchange rate against the dollar surpassed 500.
President Kassym-Jomart Tokayev, in a recent interview with the Ana Tili Newspaper, said that using foreign exchange reserves for interventions in the currency market is unreasonable.
“We moved away from the practice of artificially holding the exchange rate long ago. We operate under a regime of free-floating exchange rates determined by market factors. I believe it is unreasonable to deplete foreign exchange reserves just to sustain a strong tenge. Some market participants suggest transitioning to a more managed exchange rate. The National Bank and the government are carefully examining all options. After thorough analysis, it will become clear whether changes in the approach are necessary,” he said.
