National Fund to beef up its currency assets in Kazakhstan

Senior news correspondent
The Senate approved a new draft law

Members of the upper house of the Kazakhstani parliament have approved a new law on guaranteed transfers from the National Fund in the next three years. The document directly says how big these transfers should be: $4.7 billion in 2023, $4.3 billion in 2024, and $4 billion in 2025.

According to National Economy Minister Alibek Kuantyrov, the new regulation for the guaranteed transfers will allow the National Fund to restore its foreign currency assets: to $66.7 billion in 2023 and $78.8 – $93.2 billion in 2024 – 2025.

«We expect that limits for money transfers from the National Fund and the middle-term rate of growth in expenditures will allow us to raise fiscal discipline and strengthen the saving function of the fund,» said the minister during a meeting with members of the Senate.

The official also added that the draft law will provide a more balanced state budget and let the National Fund play a bigger role in stabilizing the national economy.

The amount of a guaranteed transfer from the National Fund is now limited by a new rule. It says that the sum of transfers must be determined based on the cut-off oil price and not exceed the forecasted direct tax payments from the oil industry.

The draft law has set a specific cut-off oil price of $48.9 per barrel next year and $42.2 – $40.3 in 2024 – 2025.

Last year, the amount of guaranteed transfer from the National Fund was forecasted at $5.1billion in 2022, $4.7 billion in 2023 and $4.3 billion in 2024.

On November 9, Aliya Moldabekova, deputy head of the National Bank, said that the bank increased its foreign currency assets to $52.4 billion.

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