Tengrinews.kz - The Chairman of the National Bank of Kazakhstan, Timur Suleimenov, explained the possible reasons for the rise in price of the dollar.
In recent days, the dollar has increased in price against the tenge, reaching 491.74 tenge per dollar. During a briefing at the National Bank, journalists asked Suleimenov about the reasons for this sharp increase.
The Chairman of the National Bank explained that the rise in the dollar exchange rate is due "primarily to economic activity."
"At the beginning of October, we are observing an increase in the volatility of the tenge to dollar exchange rate due to economic activity. The demand for dollars has significantly increased from economic agents, including both the private and quasi-state sectors. This is related to investment, infrastructure, and trade contracts, many of which involve imported raw materials and equipment. This leads to an increased demand for dollars and a rise in the exchange rate," he commented.
The second reason, according to the head of the National Bank, is the behavior of the dollar itself. Suleimenov explained that the strengthening of the dollar is the result of the U.S. Federal Reserve's monetary policy.
"We see that since the beginning of October, the dollar index against six major currencies has strengthened by 2.1 percent. This affects the euro, yen, franc, and others. If, on average, it has strengthened by 2.1 percent, the dollar itself has become stronger. In relation to the Russian ruble, for instance, as a currency of a trading partner country, the dollar has strengthened by more than 4 percent. Thus, the global strengthening of the dollar also affects our domestic tenge exchange rate," added Timur Suleimenov.
