The Association of Financiers of Kazakhstan (AFK), in its latest daily review of stock exchange events, advocated for Kazakhstan’s National Bank to conduct currency interventions aimed at stabilizing the tenge exchange rate.
The AFK highlighted that during the trading session on the Kazakhstan Stock Exchange on July 23, the USD/KZT exchange rate rose drastically, reaching a record high of 538.64 tenge per U.S. dollar (+6.21 tenge). At the same time, the trading volume was unusually high, totaling $270.9 million.
Meanwhile, such currency weakening lacks fundamental economic reasons, indicating speculative activity in the foreign exchange market. The growing pressure on the tenge exchange rate is pushing up prices for imported goods, increasing inflationary risks. This may prompt the National Bank to maintain a high base rate.
«In the current situation, conducting timely and targeted interventions aimed at reducing volatility, stabilizing exchange rate expectations and preventing further rush on foreign currency is justified,» experts with the association emphasized.
The AFK added that data on the price index of important food products, published on July 24, are worth attention.
The tenge exchange rate has already hit historical lows twice recently — on July 18 and 23. Experts believe there are no fundamental reasons for the Kazakh currency to weaken, and that market participants are seeking to profit from the panic.
It is worth noting that the National Bank regularly states in its operational reviews that it does not conduct currency interventions. However, in December 2024, against the backdrop of tenge weakening, the regulator carried out interventions worth $307.6 million to maintain the exchange rate of the tenge, while reporting on that in January.
