Appetite for cash dollars plunges as national currency is on the rise in Kazakhstan

In March, the volume of net purchases of dollars in Kazakhstan declined to 73.9 billion tenge ($145.2 million). This is the lowest figure since April 2023 ($141.2 million), according to data from the National Bank.

In January and February, this indicator stood at 120.4 billion ($232 million) and 175 billion ($338 million), respectively. This means the volume of net purchases of dollars by Kazakhstanis dropped by 57.8%, or $192 million, month-on-month. The last time this indicator dipped below the 100 billion tenge ($192 million) mark was in July 2024.

The demand for the dollar has been decreasing against the backdrop of a rebounding exchange rate of the tenge, Kazakhstan’s national currency. According to the National Bank, the average exchange rate of the tenge strengthened from 524.67 to 497.99 between January and March (+5%). As of April 25, the tenge’s exchange rate stood at 514.25 per dollar on the Kazakhstan Stock Exchange (KASE).

Net purchases of the euro, like the dollar, have also shown a significant decline. In March, Kazakhstanis spent just 11.6 billion tenge ($22.3 million) to acquire euros, compared to 34.9 billion ($67.3 million) in January and 33.1 billion ($63.8 million) in February. The change in March marked a threefold decline month-on-month, reaching the lowest level since September 2024 (2.9 billion tenge).

The volume of net purchases of Russian rubles in Kazakhstan was also negative, reaching -18.9 billion tenge ($36.4 million). This marks a 51.7% drop (-$12.3 million) compared to the previous month.