Kazakhstan sees no immediate tenge impact from higher oil prices, central bank says

Kazakhstan's tenge has shown no immediate reaction to the recent escalation of oil prices, according to National Bank Chair Timur Suleimenov. He noted that the impact of oil price shifts on the economy and currency usually takes one to two months to materialize, meaning current market movements have yet to be reflected in the exchange rate.

Suleimenov indicated that the current oil price levels are not a cause for major concern, as Kazakhstan has previously navigated periods with prices exceeding $90 and even $110 per barrel. He suggested that the recent geopolitical tensions driving up oil costs have not yet translated into significant pressure on the tenge.

Looking ahead, the government intends to keep its budget's oil price assumption conservative at $60 per barrel for the 2026 budget. Suleimenov reasoned that revising this benchmark upward could potentially lead to unnecessary government spending, and he sees no current justification for altering this forecast.

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changes in oil prices typically affect the economy and currency with a lag of one to two months, meaning recent market movements have yet to be reflected in the exchange rate