Analysts: National Bank Could Stop Lowering Base Rate

The tenge-to-dollar exchange rate has weakened by more than ten percent since the beginning of the year:

Yesterday's trading on KASE closed at 500.42; its current rate is 510-518 tenge in exchange offices. 

Financial analysts caution that the drop could prompt the National Bank to stop easing monetary policy.

In its latest market review, the Association of Financiers of Kazakhstan (AFK) notes that the tenge rate has passed the "psychological mark" – 500 per dollar. 

The drop occurred amid falling oil prices and the fall of the Russian ruble.

The strong weakening of the exchange rate (by 10.1% since the beginning of the year) removes from the agenda the possibility of resuming the cycle of reducing the base rate at tomorrow’s meeting of the National Bank of the Republic of Kazakhstan,
say AFK analysts. 

The National Bank may intervene to support the tenge.

Original Author: Nikita Drobny