Kazakhstan's Tenge Strengthens as Dollar Hits Lowest Rate Since June 2024

The US dollar has fallen to its lowest level against the Kazakh tenge in nearly a year. Following trading on the Kazakhstan Stock Exchange (KASE) on April 7, the weighted average dollar rate settled at 460.37 tenge, marking a decline of 4.88 tenge from the previous session.

This is the lowest exchange rate recorded since June 2024, when the dollar briefly traded around 460 tenge. For comparison, the official rate set by the National Bank of Kazakhstan for April 7 stands higher at 466.33 tenge per dollar.

The currency's weakness was also evident in physical exchange points across major cities earlier in the day. According to available data, the average rates at currency exchange offices showed significant variation between cities. In Almaty, the average purchase rate was 461.73 tenge with a selling rate of 464.33 tenge. In Astana, dollars could be bought for an average of just 456.96 tenge and sold for 463.96 tenge.

The sustained strengthening of the tenge is driven by fundamental market factors, primarily high global oil prices. As Chairman of the National Bank Timur Suleimenov recently explained, oil accounts for over half of Kazakhstan's export revenue. The rising price increases foreign currency supply in the domestic market, which in turn pushes the dollar's value down.

Suleimenov emphasized that while the National Bank does not give investment advice, the tenge has proven its resilience. He noted that by the end of last year, it demonstrated high returns and is considered one of the world's most attractive currencies from a risk-return perspective, drawing investor interest.

The central bank has stated that current exchange rate dynamics reflect a continued strengthening trend observed since early this year, which intensified noticeably in February. Officials attribute this to objective market factors rather than short-term reactions to isolated external events.

The National Bank reaffirmed its commitment to maintaining a flexible exchange rate policy, which it believes helps avoid economic imbalances and preserves gold and foreign exchange reserves. This stance comes after its recent decision on March 6 to keep the base rate unchanged at 18% per annum with a corridor of +/-1 percentage point.