13.01.2021, 14:35 75720

National Bank took tenge supporting measures in 2020

In general, the dynamics of the national currency reflected the trends of fundamental factors and trends in the world markets/
Deputy head of the National Bank Aliya Moldabekova told how much the National Bank spent on sustaining the tenge exchange rate in 2020, the NBK press service reports.
 
The volatility of world markets, low oil prices, the flight of investors from risky assets directly impacted the national currency dynamics,"Aliya Moldabekova said.
 
She noted that the exchange rate of the national currency after reaching minimum value of 448.5 tenge per US dollar in March and April (a decline of 17.2% since the beginning of the year) gradually won back some of the losses against the backdrop of the subsequent correction in foreign markets.
 

To stabilize the situation in the domestic foreign exchange market amid low oil prices and coronavirus spread, the National Bank and the Government took a set of measures.

 
First, in certain periods of low liquidity, to sustain the foreign exchange market, the National Bank supported the market with interventions. Their total volume for the year made $ 1.905 billion. The interventions were made in February, March, September and October. The largest volume of interventions was during the period of a sharp decline in markets in March, their volume amounted to $ 1,488 million.
 
Secondly, in order to ensure the proper level of transparency in conducting foreign exchange transactions in accordance with KYC or "know your client" procedures, the National Bank amended the rules for conducting foreign exchange transactions in terms of preliminary checks by banks of conversion transactions and control of the intended use of the purchased currency within the time frame established by law.
 
Thirdly, an important factor in the supply- demand balance in the foreign exchange market was currency conversion operations for the implementation of guaranteed transfers to the budget of the Republic of Kazakhstan. The total volume of such conversions for the year amounted to about $ 9.05 billion.
 
Against the background of stabilization of the situation in the external and internal markets, the tenge appreciated by more than 6% from the peak values in March-April and at the end of the year amounted to 420.71 tenge per dollar.
 
In general, the dynamics of the national currency reflected the trends of fundamental factors and trends in the world markets, Aliya Moldabekova concluded.

Source: Kazpravda.kz


 
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