03282017Headline:

Kazakhstan surprises with large devaluation of its currency

Kazakhstan surprises with large devaluation of its currency

Kazakhstan has devalued its currency, the tenge, by 19 percent.

It’d been compromised by Russia – its principal trading partner – enabling the rouble to slip.

Kazakhstan , currency

Kazakhstan surprises with large devaluation of its currency

Moscow did that as investors bailed out-of emerging-market values because of the scaling back people economic stimulus.

Kazakhstan also offers a deteriorating balance of payments problem from increasing imports, mainly of consumer goods.

How big the decline was a shock. It’s significantly bigger than the rouble’s five-percent decrease this season.

“From a qualitative standpoint it seems sensible. The quantity… is a significant amount of,” said Ivan Tchakarov, a Moscow-based economist at Citi who covers the Commonwealth of Independent States and Russia.

Experts said the Central Asian country seemed determined to place a floor under its currency, that will be important because it is just a large exporter of goods and energy.

What Next?

Related Articles

Leave a Reply

Submit Comment