Kazakh National Bank implements forex interventions for almost $422M

In order to stabilize the domestic market, the National Bank of Kazakhstan carried out foreign exchange interventions for $421.9 million last week, Report informs citing TASS.

“In order to prevent external shocks in the country’s economy and in order to maintain balance in the domestic foreign exchange market, the National Bank conducts foreign exchange interventions. Over the past week, their volume amounted to $421.9 million, or 59.2% of the total volume of exchange trading,” the press service of the regulator said.

According to the press service, the sale of foreign currency to ensure transfers from the National Fund to the republican budget last week amounted to $240.2 million. The share of foreign exchange interventions of the National Bank and sales from the National Fund amounted to 92.9% of the total trading volume.

“In the short term, tenge volatility will depend on sanctions rhetoric, expectations of domestic participants and the situation on world markets. At the same time, the National Bank continues to work on the transition to a full-fledged inflation targeting regime, a necessary condition for which are structural changes in the economy and adherence to the principles of the free float of the exchange rate,” the regulator said.