Kazakh National Bank not conduct currency interventions in July

In July, the National Bank did not conduct currency interventions, and also did not conduct operations for the purchase or sale of foreign currency for the pension assets of the UAPF and other funds under trust management, El.kz reports with reference to the National Bank.

 "During July, the tenge was traded in the context of the global strengthening of the US dollar and the bitter tightening of monetary policy by the Fed, as well as seasonal factors associated with the holiday period. At the end of July, the tenge exchange rate changed by 1.5% to 477.07 tenge per dollar. The average daily trading volume on the Kazakhstan Stock Exchange for the month increased from $ 96.4 million to $ 118.6 million. Total trading volume in July was $2.4 billion.

The foreign exchange market was supported by sales of foreign exchange earnings by entities of the quasi-public sector, which amounted to about 543.9 million dollars. Companies of the quasi-public sector independently sell in the foreign exchange market through second-tier banks.

Sales of foreign currency to ensure transfers from the National Fund to the republican budget in July amounted to 599.2 million dollars. The share of sales from the National Fund amounted to 25.3% of the total trading volume.

In the short term, the volatility of the tenge will depend on changes in the geopolitical situation, the expectations of domestic participants and the situation on world markets.     

The National Bank will continue to follow a flexible exchange rate formation, which excludes the accumulation of imbalances and ensures the safety of gold and foreign exchange reserves," the report said.

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