National Bank head vows no abrupt devaluation ahead for Kazakhstan
ASTANA. Feb 12 (Interfax) - Head of the National Bank of Kazakhstan Kairat Kelimbetov said that in the event of upheavals in the external capital markets, no sharp devaluation in Kazakhstan will follow.
"If there are changes in the external capital markets, we will not allow for a simultaneous devaluation shock to happen, but will pursue a gradual and flexible adjustment of the exchange rate," he told reporters after the government meeting in Astana on Wednesday.
He said the National Bank has a necessary safety cushion to manage a gradual adjustment of the national currency.
He said that the total foreign exchange reserves of the National Bank and the National Fund account for more than $100 billion, including $29.8 billion in the reserves of the National Bank.
Kelimbetov said that in the framework of the economy de-dollarization, requirements for non-bank financial institutions would be tightened.
"As for de-dollarization, changes will primarily affect the regulatory framework, the laws on payments and the laws on currency regulation, while non-bank exchange offices will have tougher requirements to qualify," Kelimbetov said.
In December 2014, the government and the National Bank of Kazakhstan announced a series of measures within the economic policy for 2015 to enhance the role of the national currency in the economy.
To generate more banks savings in tenge, a guaranteed payout to depositors from Kazakhstan Deposit Insurance Fund has been increased from 5 million to 10 million tenge upon the increase in its capitalization (current rate 185.05/$1). The upper limit of the recommended interest rates on guaranteed deposits in dollars will be reduced from 4% to 3% per annum.
In order to stimulate the growth of tenge liquidity in banks and increase lending to the economy, certain norms of prudential regulation could be eased, if necessary. The National Bank will provide tenge liquidity to banks in case of liquidity shortage.
