“There are two factors”: National Bank head comments on dollar exchange rate

Tengrinews.kz - Governor of the National Bank of Kazakhstan Timur Suleimenov has commented on the recent fluctuations in the U.S. dollar exchange rate.
Speaking on the Senate sidelines, Suleimenov pointed to several factors behind the rise in the exchange rate.

“The main factors are, first, the start of the vacation season, which has led to increased demand for foreign currency from individuals. The second key factor is the launch of budgetary and quasi-government programs. Due to budgetary procedures and public procurement processes, the funds allocated in the budget typically reach administrators by June — those who actually spend them. We are now in the implementation phase of investment projects, many of which involve the import of equipment or spare parts. As a result, we’re seeing a higher volume of trading. In the past few days, trading activity has increased significantly,” Suleimenov explained.

The National Bank head declined to make any forecasts but said there was no reason to expect a continued rise in the dollar.

“We don’t see any grounds for further increases in the exchange rate. We can’t offer a forecast, but I’ve outlined the two main factors. Our economy is growing, although no one can predict external influences. One positive development is that, due to the hostilities between Iran and Israel and the potential threat to oil supplies, oil prices have risen — currently around $77 per barrel. How long that will last is unknown. But fundamentally, we don’t see any major reasons for the dollar to keep rising,” Suleimenov added.

Earlier, the National Bank issued an informational statement warning citizens about new fraud schemes and urging the public to remain vigilant.