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Kazakhstan: Central Bank Explains Pre-Election Currency Rally

(A previous version of this report incorrectly stated that the central bank had spent $464 million propping up the tenge in February.)

After a precipitous plunge over many months, Kazakhstan’s embattled currency has gained ground in recent weeks.

Now, the governor of the central bank has revealed the reason for the tenge’s sudden rally.

Speculation had been rife that the bank was propping up the currency ahead of the March 20 parliamentary election — but it has actually been maneuvering to weaken the tenge, Daniyar Akishev revealed to parliament on March 3.

The precise total spent on buying hard currency in February to bring down the tenge rate was $474 million, he said.

The main factor contributing to the tenge’s rise appears to have been the sale of dollars as the tax-reporting period approached at the end of February, when major companies have to pay their dues in tenge.

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Kazakhstan: Central Bank Explains Pre-Election Currency Rally

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