Tenge strengthens faster than expected in July
This digest was compiled by AI from multiple sources — links to the originals are below.
The Kazakh tenge has strengthened against the dollar in early July, outperforming market forecasts. The currency gained 2.3% since July 1, trading at 445 per dollar on July 9.
Currency Rally
The tenge strengthened 2.3% in the first nine days of July, closing at 445 per dollar on July 9, according to DKNews.kz. Analysts had expected a weaker performance due to seasonal import demand. The rally was driven by higher oil prices and increased foreign currency inflows from exporters.
Market Factors
Brent crude averaged $78 per barrel in early July, up from $72 in June, supporting Kazakhstan's export revenues. The National Bank of Kazakhstan sold $150 million in interventions to smooth volatility, but the tenge continued to appreciate. The central bank's base rate remains at 13.5%.
Ministry on Price Lag
Kazakhstan's Ministry of National Economy stated that the effect of tenge strengthening on food prices is delayed and not immediate. The statement came in response to a query from the Informburo portal.
What's Next
The tenge is expected to trade in a 440-450 range in the coming weeks, depending on oil price movements and geopolitical developments. It remains unclear whether the National Bank will adjust its intervention strategy if the currency continues to strengthen.
3 sources
Tenge strengthens faster than expected in July
