National companies in Kazakhstan will again be required to sell half of their foreign currency earnings. The corresponding decree has been prepared by the government and the National Bank. The measure is aimed at increasing the balance of the foreign exchange market, say the responsible officials. The dollar is rising, oil is falling, and the tenge is once again under stress. The National Bank and the government are forced to require the quasi-state sector to sell up to 50% of foreign currency earnings to reduce imports and demand for foreign currency. RASUL RYSMAMBETOV, financial analyst:
- The instrument is not market-based. But it is simply necessary. However, one should not get carried away with it; it can be introduced for a year. But it will be more difficult afterwards.
Mandatory sale of foreign currency earnings in Kazakhstan was introduced in 2020 during the COVID pandemic. 75% of currency was sold. In February 2023, it was reduced to 30%, and in August of the same year, the decree was suspended. During that period, there was a significant increase in domestic inflation. ASKAR KYSYKOV, director of the applied research center TALAP:
- Ten years have passed, but it is already clear that the floating exchange rate does not work. The National Bank is constantly forced to intervene in the foreign exchange market either through the sale of national fund assets or through instruments to replenish the assets of the ENPF. Now, this is the norm of mandatory sale of foreign currency earnings. It cannot be said that we have achieved market-based exchange rate formation in Kazakhstan.
Since yesterday, the price for a barrel of oil has strengthened from $72 to $73. The exchange rate of the tenge today at the KASE was 496 tenge per 1 dollar. After the decree of the National Bank, economists predict the strengthening of the tenge to 480 in the coming month.