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.
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.