The Minister of National Economy of the Republic of Kazakhstan explained a number of reasons for the sharp weakening of the national currency. According to him, the first factor is the global strengthening of the dollar index in recent months.
The weakening of the Kazakhstani tenge is causing more and more concern among the population. According to economists, it is time for the country's authorities to think about introducing non-tariff regulation of imports from Russia in order to stop the depreciation of the national currency.
For more than ten days now, Kazakhstanis have been anxiously watching the tenge cross the threshold of 500 tenge per dollar. During this period, the tenge exchange rate against the dollar and the euro in Kazakhstan fell by more than 5 percent. The Government of the country has announced the adoption of emergency anti-crisis measures. But experts do not rule out a further drop in tenge. The first reports of an unexpected drop in the tenge exchange rate against the dollar and the euro for the population of Kazakhstan appeared on the second day of Vladimir Putin's state visit to Kazakhstan on 28th of November.
The Minister of National Economy of the Republic of Kazakhstan explained a number of reasons for the sharp weakening of the national currency. According to him, the first factor is the global strengthening of the dollar index in recent months. The second factor is associated with a slight decrease in world oil prices. And the last, important factor is the weakening of the Russian ruble.
Experts note that the reason for such dependence of tenge on the ruble is the close economic ties between the two countries. Russia is one of Kazakhstan's key trading partners, and a significant part of mutual trade is carried out in rubles. According to official data, imports of food products, that is, 43% are products of Russian manufacturers. This means any strengthening or weakening of the ruble directly affects the prices of imports and exports, which, in turn, affects the tenge exchange rate.
In addition, in Kazakhstan, most of the goods and food are imported from other countries that are not members of the EAEU. It turns out that this part of the goods is purchased for dollars, imported to Kazakhstan and sold for tenge. The dollar is getting more expensive, respectively, and goods for Kazakhstanis are getting more expensive. Further, as a rule, this stimulates inflation and prices for other goods.
Against the background of an unstable geopolitical situation, changes in the tenge exchange rate against the dollar and volatility in world food markets, the Ministry of Agriculture of the Republic of Kazakhstan announced measures to ensure food security and stabilize prices for essential products. The Government of Kazakhstan also stated that all necessary measures will be taken to stabilize and minimize possible negative consequences for the economy and the population.
Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most s...
Escalating attacks on Black Sea ports, cargo vessels and export infrastructure have crippled a vital global grain trade route, threatening supplies...
Afghan business representatives are seeking new trade and investment opportunities at Iran’s 26th International Building Industry Exhibition,...
The collective-defence agreement between Türkiye, Saudi Arabia and Pakistan signals that regional powers no longer want to rely solely on external security guarantees. Whether it becomes a stabilising deterrent or another axis of rivalry remains unresolved.
U.S. President Donald Trump says Washington is not seeking an extension of its memorandum of understanding with Iran, claiming the U.S. already controls the Strait of Hormuz through its naval blockade.
Shipping through the Strait of Hormuz has slowed, according to the latest data, as uncertainty over the waterway’s reopening kept most shipowners away. Six commodity vessels crossed the strait on Tuesday, down from nine the day before and below the 10-day daily average of 11.
Iran has said the Strait of Hormuz will remain closed until the U.S. fulfils the terms of an interim deal, including lifting the maritime blockade and sanctions and releasing Iran’s frozen assets.
Ukraine has targeted at least 20 Wildberries warehouses across Russia since 18 July, disrupting a major logistics network. Kyiv says the strikes aim to disrupt alleged military-linked supplies, while the attacks have caused billions of dollars in losses and wider economic pressure.
Afghan business representatives are seeking new trade and investment opportunities at Iran’s 26th International Building Industry Exhibition, as they look to expand ties with Iranian and international companies.
Alexey Chadayev has resigned as an advisor to Russia’s transport minister after Azerbaijan placed him and two other Russian citizens on an international wanted list over alleged calls for violence and terrorism, amid a widening diplomatic row between Baku and Moscow.
At least six Palestinians have been killed in an Israeli airstrike in Gaza City, according to Palestinian health officials, as efforts by U.S. President Donald Trump’s administration to advance a plan to end the war remain deadlocked.
Georgia’s newly elected Catholicos-Patriarch Shio III is set to visit Istanbul, with the upcoming trip discussed during a meeting with Metropolitan Emmanuel of Chalcedon, a representative of Ecumenical Patriarch Bartholomew I.
Azerbaijan’s strategic rise is turning it from a transit state into a regional rule-setter, with the Middle Corridor giving Baku growing influence far beyond its size, analyst Ahmad Alili says.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment