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National Bank head answers what will happen to dollar exchange rate this summer
🇰🇿 Kazakhstan /Economy & Trade

National Bank head answers what will happen to dollar exchange rate this summer

From Tengrinews · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • The National Bank of Kazakhstan sees no prerequisites for a sharp increase in the dollar exchange rate this summer or autumn.
  • Seasonal factors, like increased travel demand, traditionally influence currency fluctuations.
  • The bank expects the exchange rate to remain within historical values without extraordinary changes.

Kazakhstan's National Bank does not anticipate any significant surges in the dollar exchange rate in the coming months. Timur Suleimenov, the bank's chairman, stated that there are currently no fundamental or market-driven prerequisites for a sharp increase, neither for the summer nor the fall.

As for the dollar exchange rate, we do not see any fundamental or market prerequisites for its sharp increase. Neither in summer nor in autumn.

— Timur SuleimenovThe National Bank Chairman addressed concerns about the dollar's future value.

Suleimenov explained that currency fluctuations are often influenced by seasonal patterns. He drew a parallel to the price of vegetables or meat, noting that demand for foreign currency typically rises during the summer due to the holiday season. Additionally, large companies tend to increase their purchases of foreign equipment and materials during the summer and autumn to support construction projects.

Historically, the exchange rate tends to decline at the beginning of the year and strengthen towards the middle and end. The National Bank expects this trend to continue this year, but emphasizes that the movement will remain within established historical values. "There will be no sharp increase," Suleimenov assured.

We have seasonality in vegetables, in meat prices and in other things. Even in tariffs: in summer we pay less because we do not heat our homes, while in autumn and winter we heat more. Therefore, the dollar exchange rate also has its own seasonality.

— Timur SuleimenovSuleimenov explained the concept of seasonality affecting currency exchange rates.

He also recalled that previous exchange rate fluctuations, such as the rate around 500 tenge per dollar, were linked to oil prices. When the price of oil, Kazakhstan's primary export, nearly doubled, foreign exchange earnings increased, naturally strengthening the tenge. Suleimenov reiterated that both the supply and demand for foreign currency influence the exchange rate.

Therefore, we think the same trend will continue this year. But it will not be anything extraordinary. It will remain within established historical values. There will be no sharp increase.

— Timur SuleimenovThe National Bank Chairman assured that the exchange rate would remain stable.
DistantNews Editorial

Originally published by Tengrinews. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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