Daniyar Akishev: "The domestic economy has adapted to changes in the exchange rate conditions"
The head of the National Bank of Kazakhstan at the session of the Government said that the annual inflation declined to single values
According to the results of November 2016, Kazakhstani inflation stands at the level of 1.2%, and from the beginning of the year - 7.5%. The chairman of the National Bank Daniyar Akishev presented the data during a discussion of the results of socio-economic development of Kazakhstan and execution of the budget for the first 11 months of this year at the Government meeting.
"At a time when changes in the exchange rate of tenge in August last year was 78%, by the condition on December 15, 2016, the annual inflation declined to single value of 8.7%, we can assume that the process of transferring the effect of rate correction on domestic prices has almost completed", - said Daniyar Akishev.
The head of the National Bank believes that "there was an adaptation of the domestic economy to a change in the exchange rate conditions".
"In the next 2 months, inflation will reach the established corridor of 6-8% and will be within the corridor in 2017", - predicted Daniyar Akishev.
Commenting on the situation at the foreign exchange market of Kazakhstan, Daniyar Akishev stated that the National Bank does not intervene in the foreign exchange market during the past three months. KZT exchange rate has formed "only under the influence of fundamental factors, which currently have a positive trend".
"The situation at the domestic foreign exchange market is stable. The National Bank does not interfere with the fundamental trends that develop under the influence of external and internal factors. At the end of November, the exchange rate of tenge was 341.44 tenge per dollar, weakening from the beginning of the year by 0.4%. Currently on the market there are slight daily fluctuations of tenge”, - said the head of the National Bank.
At the same time, added Akishev, due to the agreements to reduce oil production by most oil-producing countries and rising oil prices on the world market in December, there was a trend in the strengthening of tenge. "Free floating tenge rate policy has allowed to begin the process of gradual recovery of reserves", - concluded the chairman of the National Bank.
According to Daniyar Akishev, foreign exchange reserves of the National Bank at the end of November amounted to 29.8 billion US dollars, and at the beginning of the year was recorded an increase of 2 billion US dollars. The volume of foreign exchange reserves rose due to growth in world gold prices. In addition, the purchase of foreign currency on the domestic market by the National Bank has played a significant role in it.
Foreign exchange assets of the National Fund amounted to 61 billion US dollars. Total reserves of the country, according to Daniyar Akisheva, reached 91 billion USD, or 68% of GDP.
Zhanar Serdalina
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