Kazakhstan: tenge devaluation and the economy. Devaluation in Kazakhstan: facts, history, projections and consequences

Date:

2019-02-21 15:00:44

Views:

1405

Rating:

1Like 0Dislike

Share:

Table of contents:

Tenge-national currency of Kazakhstan. It was introduced in November 1993, shortly after independence of the country. Kazakhstan devaluation which is quite frequent, it is still considered one of the most successful post-Soviet States. A monetary system is taken as a model in other States.

Kazakhstan devaluation

Name and symbolism

The national currency of Kazakhstan-tenge it. She was named after the small Turkic coins. Dengue was silver. Their name was derived from the name of Russian coins. Polkopeyki called money. In November 2006 Kazakhstan, the devaluation which once again ended, had a contest on the symbol KZT. Of the 30 thousand jobs chose the one picture. Its authors were Sanzher Amerkhanov and Vadim Davidenko. For their work they received one million tenge. At the old rate is about eight thousand dollars. This amount is paid to the national Bank of Kazakhstan. An additional five thousand dollars presented to the winners of the commercial financial Union “Alliance”. However, after the publication of the work broke large-scale scandal. It turned out that the figure does not differ from the symbol of the postal service of Japan. And he has more than 120 years!

Quick details

In order to answer questions about the development of Kazakhstan, will the devaluation of the tenge, it is necessary to first know how to create this state. Tenge was introduced later than the majority of new national currencies in the former Soviet Union. In 1991 was created a group of designers to create bills. And only in November 1993, the presidential decree on introduction of own national currency. Initially, the exchange rate of the tenge to the Soviet ruble was equal to 1: 500. In 1995, Kazakhstan has opened his own factory for the production of banknotes. Prior to this coins were minted in Germany, and banknotes – in the UK. Then do it already itself of Kazakhstan.

Recommended

Competition is the rivalry between participants in the market economy. Types and functions of competition

Competition is the rivalry between participants in the market economy. Types and functions of competition

Competition – a concept inherent in a market economy. Every participant in the financial and commercial relations, seeks to take the best place in the environment where it must operate. For this reason, there is stiff competition. The struggle ...

The mayor: powers and duties. Elections of the mayor

The mayor: powers and duties. Elections of the mayor

Normal functioning of all systems of the settlement, competent and timely execution of tasks in the sphere of economic, social and other areas of development is impossible without control of the mayor. But how voters can evaluate the quality of work ...

Francisco Franco: biography and political activities

Francisco Franco: biography and political activities

When the civil war began in Spain, General Francisco Franco (Francisco Paulino of Hermenegildo Teodulo Franco Bahamonde - full name) celebrated its arakatzailea, but he seemed already tired of life and much older than his years. To unpresentable appe...

the devaluation of the tenge in Kazakhstan

History of problems

Devaluation occurred in April 1999. The national Bank reduced the exchange rate at 64 %. The second crisis happened in 10 years. In Kazakhstan the devaluation, the second in a row. The dollar rose to 25 tenge. In 2014, there was a third devaluation of the tenge in Kazakhstan. The national currency decreased by one-fifth, or 20 %. But this measure was not enough. In the summer of 2015 was the last devaluation in Kazakhstan. It devalued the tenge by more than 35 %. In November of the same year appeared in circulation in denominations of 20 thousand.

National economy: basic information

Kazakhstan's Economy is the largest in Central Asia. In the post-Soviet space after Russia. After 2010, Kazakhstan, the devaluation of which was held a year earlier, is an active participant of the customs Union of the EEU. GDP per capita at purchasing power parity amounted to 24 thousand US dollars. In 2014, the growth amounted to 4.3 %. The lion's share of GDP provide services (57 %) and industry (38 %). The main industry – oil and gas, uranium, coal, ferrous and non-ferrous metals; engineering; construction; food sector. Exports in 2013 amounted to 83 billion US dollars. His main article – it is oil and its derivatives. That is why 2015 is such a small GDP growth. If we talk about the devaluation in Kazakhstan, the drop in oil prices may be the main cause of her next round. Public debt is 12% of gross domestic product.

 devaluation in Kazakhstan, the forecast

Prices in Kazakhstan, after the devaluation of the

The Emergence of problems in the economy always leads to a reduction in the volume of construction Employment falls, which reduces their purchasing power. This leads to the fact that real estate prices in Kazakhstan, after the devaluation is rapidly falling. After the establishment of the floating exchange rate of tenge in the summer of 2015 the cost of housing has decreased by 10 %. All experts insist on one thing: the state should continue the program of care. The demand should stimulate supply. And in the crisis to create such a situation can only intervention of the state.

Event Details

To date, the country has experienced four stages of the crisis. The first devaluation of the tenge in Kazakhstan took place in April 1999. It devalued the currency by more than 60 %. The second devaluation occurred in 2009. The National Bank did not use different methods to maintain currency. The reserves decided to keep, and the rate to be adjusted. The third devaluation was observed in February 2014. It happened amid a sharp jump in the dollar and the Euro compared with the national currencies of the countries of the former Soviet Union. In Kazakhstan was installed in the corridor fluctuations tenge (185+/-3 for$ 1). People were disappointed with this decision. At the beginning of the year, the government and the national Bank tried hard to convince the people that there will be no devaluation. After another round of currency depreciation has suspended its work for many exchanges and online shopping. Also began protests outside the National Bank, but online petitions have collected signatures in favor of Nazarbayev's resignation from the presidency. However, after the detention of severaldozens of protesters all the excitement quickly ended.

 Kazakhstan devalued

Will there be devaluation in Kazakhstan

For some time after the winter meetings 2014 all calmed down. However, in August 2015 was a new phase of devaluation. The national Bank of Kazakhstan released the tenge to float freely. The main reason for the necessity of this step – fall of the ruble. Prime Minister of Kazakhstan said that the move is aimed at maintaining the industry. New market rate of tenge, according to him, will create preconditions for the restoration of economic growth by reducing inflation and creating more jobs. But whether to continue the devaluation in Kazakhstan? Forecast, unfortunately, is disappointing. GDP growth in 2016 is expected to reach 1,3 %, which is 5 times less than the average level in 5 years.

about the devaluation in Kazakhstan

External debt

After the collapse of the USSR, Russia took upon himself the responsibility for the payment of external debt. Other countries had the opportunity to start from scratch. However, in March 2011, the debt of Kazakhstan amounted to 124 billion USD. About 6 % of the amount of – this is a government loan. At the end of 2008 mentioned the debt amounted to about 112 billion Now he has grown – 150 billion U.S. dollars. This means that every citizen (including newborn babies) are $8761 foreign loan.

Financial system

In 1998, Kazakhstan has successfully passed financial reform. For sustainable development was created the national Fund. Its purpose – to reduce the dependence of States on external factors. There are 38 banks. State-owned assets are concentrated in the holding «Samruk-Kazyna”. It supports a commercial entity buying, if necessary, their assets and creating subsidiaries. In the summer of 2015, the authorities decided to abandon the exchange rate band of the tenge and to a policy of inflation targeting. President Nursultan Nazarbayev has said it will try to compensate for losses to individuals who are depositors, with savings in "Zhilstroysberbank". The last straw for the economy of Kazakhstan was the weakening of the yuan. Government agencies have long been thinking about the need for the stabilization of the tenge exchange rate by using foreign exchange reserves. However, in August 2015 it was decided to move to a floating exchange rate. Affected him and the subsequent fall of oil. Deflationary expectations in the country are still very high, but the hype is not there. Analysts say that individuals stocked up on currency and some companies have suspended their activities. Nursultan Nazarbayev said that inflation targeting – this is a necessary measure, but the alternatives she had.

Kazakhstan will the devaluation of the tenge

The consequences of the financial crisis of 2007-2010

Of all the countries of Central Asia before us, the state most integrated into the international economic relations. Therefore, the global financial crisis and found here the greatest reflection. Besides Kazakhstan exports raw materials. He is very dependent on oil prices and its derivatives on the world market. The underdevelopment of the stock market in the country has led to a spike in property prices. And then the financial bubble burst, despite customized forecasts Kazakhstan's leading experts.

Trade

Traditional partners of Kazakhstan – the countries of the CIS and the Baltic States. They account for more than 60% of exports and imports. In 2013, the foreign trade amounted to 132 billion US dollars. Main partner-the Russian Federation. In Kazakhstan historically tight cooperation with each other. From foreign countries the main partners are such countries: UK, Germany, Italy, Turkey, USA, Czech Republic, Switzerland, Republic of Korea. Kazakhstan is trying to diversify its ties. The state is a major partner of India in Central Asia. A growing volume of trade turnover with the Russian Federation. In 20 years of independence, it has grown more than twice. From July 2011 began to operate the Customs Union of Kazakhstan with Russia and Belarus. According to experts, this integration can provide additional 15 % to the GDP.

International law

The Total value of exported goods – to 82.5 billion US dollars. The main export industry – mining, fuel, metallurgical and chemical. The structure is dominated by raw materials. It is, therefore, unstable economy of Kazakhstan. Oil and its derivatives account for 35 % of exports, ferrous and non-ferrous metals & ndash; 33 %, ore-12 %, grain – 9 %.

Import

Kazakhstan imports into its territory raw materials, equipment, vehicles, mineral fuels and food products. After 2002, the import is growing, especially the finished product.

 prices in Kazakhstan, after the devaluation

Transport

Kazakhstan has a favorable geographical location. Therefore, it has good transport capacities for the development of cargo transit. In 2007, Kazakhstan began the joint construction of a canal "Eurasia", which was supposed to connect the Caspian sea with the Azov pool. In the case of the project of Kazakhstan is considerably better. He gets access to theinternational seaports.

Insights

KZT is the most devalued the national currency of Europe. According to the calculations of economists, it depreciated by almost 2 times (over 85.2 %). This is mainly due to external factors, on which the government could not influence. However, now this situation affects the reduction in the volume of industry in Kazakhstan. Pressure on the economy triggers a reduction of the Renminbi and the ruble, and the sharp decline in oil prices. At the moment the national Bank of Kazakhstan released the tenge to float freely. Save any situation such a measure, time will tell.

However, the expectations of the authorities of Kazakhstan, the economic situation is likely to develop in the negative scenario. The Prime Minister has called on businessmen and ordinary citizens begin to adapt to the new situation. In the next five years the main export of Kazakhstan (oil, as in the Russian Federation) will hold on average about 30-50 us dollars per barrel. The state needs to move away from the commodity orientation of trade. Logical development of the it sector. There are also good opportunities for the development of engineering. If the state wants to develop dynamically, he needs to get off the "oil needle". Otherwise, Kazakhstan, the devaluation which has already been observed four times, will be forced to devalue its currency in the future.


Article in other languages:

BE: https://tostpost.com/be/nav-ny-gramadstva/28595-kazahstan-deval-vacyya-tenge-ekanom-ka-deval-vacyya-kazahstane-fakty-g.html

DE: https://tostpost.com/de/news-und-gesellschaft/28256-kasachstan-die-abwertung-der-tenge-und-wirtschaft-abwertung-in-kasachs.html

ES: https://tostpost.com/es/noticias-y-sociedad/28146-kazajst-n-la-devaluaci-n-de-tenge-y-la-econom-a-la-devaluaci-n-en-kaza.html

KK: https://tostpost.com/kk/zha-aly-tar-o-am/28921-aza-stan-te-ge-deval-vaciyasy-zh-ne-ekonomika-deval-vaciya-v-kazahstan.html

PL: https://tostpost.com/pl/aktualno-ci-i-spo-ecze-stwo/29973-kazachstan-dewaluacja-z-ot-wki-i-gospodarka-dewaluacja-w-kazachstanie-.html

PT: https://tostpost.com/pt/not-cias-e-sociedade/29725-cazaquist-o-a-desvaloriza-o-tenge-e-economia-a-desvaloriza-o-no-cazaqu.html

TR: https://tostpost.com/tr/haber-ve-toplum/27301-kazakistan-deval-asyon-tenge-ve-ekonomi-kazakistan-da-deval-asyon-ger-.html

UK: https://tostpost.com/uk/novini-ta-susp-l-stvo/29165-kazahstan-deval-vac-ya-tenge-ekonom-ka-deval-vac-ya-v-kazahstan-fakti-.html






Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

Comments (0)

This article has no comment, be the first!

Add comment

Related News

Krutitsy metochion in Moscow: description, history, hours, location and interesting facts

Krutitsy metochion in Moscow: description, history, hours, location and interesting facts

Many great monuments and attractions can be found in Moscow. Walking through its center, is acquainted with many objects of cultural heritage and see a lot of interesting things. Their story usually closely linked with the history...

"Syzran tomato": folk tradition, and General merriment

In Russia, in different cities, often hosts folk festivals on various themes. "Syzran tomato" has become one of the favorite holidays in the Samara region and beyond.HistorySyzran ' at all times developed at the expense of agricul...

What is informational support?

What is informational support?

Information support (is) refers to a form of social assistance. She is providing valuable information (information) to solve specific problems in manufacturing or in the organization. Seen this type of support in modern society as...

Owner reviews, HPE-208. Description, characteristics, photos

Owner reviews, HPE-208. Description, characteristics, photos

Fans of hunting very often complain of problems associated with the large weight of the rifle and the long barrel. At first glance, much of the work is to carry their weapons, no. But after several hours of journey and overcoming ...

Single-mandate district consists of... single-member electoral district

Single-mandate district consists of... single-member electoral district

go To the polls not all. The fact that people don't understand much about how they are. The systems are different, and the elections themselves, too. They say you need to go and vote in single-member districts. What is this? It is...

Academician Dmitry Likhachev

Academician Dmitry Likhachev

Already a whole generation that does not remember of Dmitry Likhachev. But some people deserve to be remembered. In the life of this outstanding scientist and a spiritual companion was instructive. And for any thinking person will...