NBK commented on KZT weakening

Photo: Tauekelov
The press service of the National Bank spread the comment of the monetary operations director, Nurzhan Tursunkhanov regarding the situation with the KZT exchange rate, reports.

It is reported that the tenge against the US dollar at the opening of trades on September 28 weakened by 0.38% to 428.20 compared to the previous week's close at 426.60, despite the fact that the oil price did not change much.

“Today we see weakening of the national currency, caused primarily by the US dollar strengthening in world markets. The dollar index reached a two-month peak, strengthening against the basket of major world currencies amid growing concerns about the impending second wave of coronavirus, as well as the upcoming U.S presidential elections. According to the IMF, the crisis associated with the coronavirus pandemic will last longer than expected, so the economies of some countries will need years to return to growth. Alarms about the second wave of coronavirus in Europe and introduction of restrictive measures support the dollar too,” Nurzhan Tursunkhanov commented.

He noted that the currencies of developing countries also felt the pressure of external markets. The Turkish lira continued to hit all-time highs, the Brazilian real and Mexican peso weakened 0.9% over Friday, and the South African rand lost 1.2% against the dollar.

"The Russian ruble became an anti-record holder last week, exceeding 78 rubles per dollar - the maximum from April levels. The rise in the dollar index spurred the decline in oil prices. Despite a weak recovery in oil quotes in trading on Thursday and Friday, the weekly trend in oil prices remains in the red- minus 2.9%. In addition, the outlook for oil demand growth remains dubious amid a new rise in COVID-19 and introduction of restrictive measures in a number of countries. Against the background of the general movement of currencies in developing countries and uncertainty about the recovery in oil demand, the tenge exchange rate is formed with the dynamics of fundamental external factors, "the expert concluded.

13:11, 28 September 2020