National Bank continue to follow principles of floating exchange rate
Depreciation of tenge in nominal terms constituted 0.4% in 11 months, the rate of tenge constituted 341.44 tenge for dollar by the end of November. Head of the National Bank of Kazakhstan Daniar Akishev reported about it during the press conference, BNews.kz reports.
"We continue to follow the principles of the free floating exchange rate. The cost of tenge is determined by internal and external fundamental factors that provides predictability of dynamics of a rate of tenge," the chairman of the financial regulator reported.
He also informed that the National Bank did not carry out intervention in the foreign exchange market in November.
"Influence of National Bank on a fundamental trend of the exchange rate is equal to zero. We will continue to adhere to policy of the floating exchange rate of tenge as the received results once again confirmed the correctness of decision on the mode of the exchange rate," Akishev said.
Besides, it became known that inflation developed at the level of 7.5% in 11 months of the current year, having decreased to 8.7% from 17.7% in July, 2016.
The head of the National Bank explained that transfer to internal prices of effect of correction of the national currency rate last year and at the beginning of this year is a basic reason of inflation. At the same time changes of internal prices is much less than change of the exchange rate of tenge.
"The national bank considers that process of transfer of a rate adjustment to internal prices is complete and there is adaptation of economic agents to new parameters" D. Akishev said.