Currency Market Report: June Results and July Projections, DKnews.kz reports.
June Results: Tenge Weakening
In June 2024, the tenge weakened by 5.5%, reaching a rate of 471.84 tenge per US dollar. The average daily trading volume on the Kazakhstan Stock Exchange decreased from $251 million to $183 million, with a total monthly trading volume of $3.7 billion. These changes indicate significant fluctuations in the currency market and highlight the need for stabilization measures.
Currency Sales from the National Fund
To ensure transfers to the republican budget, $420 million were sold from the National Fund in June. These sales accounted for 11% of the total trading volume, with no more than $21 million sold per day. The National Bank, adhering to the principle of market neutrality, conducted regular and even sales of foreign currency. This practice minimizes the impact of National Fund operations on the currency market, ensuring stability and predictability.
Supporting Pension Fund Currency Proportion
In June, the National Bank continued to purchase foreign currency on the stock exchange to maintain the foreign currency share of the Unified Accumulative Pension Fund (UAPF) at 30%. The total purchase amounted to $293 million, or about 8% of the total market volume. This is an important step towards diversifying and strengthening pension assets, contributing to financial stability and protecting the interests of citizens.
Absence of Currency Interventions
In June, the National Bank did not conduct any currency interventions, indicating sufficient market stability and a lack of urgent need for stabilization measures. This approach allows for the conservation of resources and their effective use in the future when actual needs arise.
July Projections: Currency Sales and Purchases
Based on preliminary forecast requests from the Government for transfers to the republican budget, the National Bank expects to sell between $450 million and $550 million from the National Fund in July 2024. This is necessary to meet state financial obligations and support market liquidity.
Currency purchases to maintain the foreign currency share of UAPF pension assets in July 2024 are expected to be between $250 million and $350 million. These operations are aimed at ensuring the stability and predictability of the pension system and protecting the interests of contributors.
June 2024 saw significant changes in Kazakhstan's currency market, with the tenge weakening and trading volumes decreasing. At the same time, the National Bank successfully implemented a market-neutral strategy in selling currency from the National Fund and continued to support pension assets through foreign currency purchases. The projections for July include the continuation of these measures, aimed at maintaining market stability and predictability. In the current economic environment, such steps are necessary to support the country's financial stability.
