ASTANA, Kazakhstan, November 29. Kazakhstan anticipates that the storm of price increases will not sweep across its economic landscape following the tenge's descent, TurkicWorld reports.
This was stated by the Chairman of the National Bank of the Republic of Kazakhstan, Timur Suleymanov. He pointed out that a dollar exchange rate of 500 tenge is, without a doubt, a "psychological figure." However, the changes are just a drop in the bucket, coming in at only 2 percent.
"This two percent depreciation of the tenge will probably affect prices in some way, but naturally, not in such a panic-driven manner. Therefore, I wouldn't worry too much about prices changing instantly, especially for food products. We are self-sufficient in them, almost entirely," Suleymanov added.
The Chairman of the National Bank also emphasized that the National Bank has been conducting currency interventions since November 16 and is ready to continue if necessary. Notably, $1 billion has been spent on this, with funds drawn from the National Bank's reserves.
"I wouldn't worry too much about prices changing instantly. Especially for food products," Suleymanov said.
To note, this morning, the National Bank of Kazakhstan decided to tighten the screws by raising its base rate from 14.25 percent to 15.25 percent. The most recent tweak to the interest rate took place in July, when it took a dip from 14.5 percent to 14.25 percent.
