What happened to the Tenge?

For those of you that didn't know the Tenge (KZT)  is the local currency in Kazakhstan. 

Today came as a surprise to many when the Central Bank of Kazakhstan decided to stop supporting the local currency at the 155 to the $ mark. 

"Not to allow destabilization of the financial market and the overall economy, the National Bank sets a new fluctuations corridor at 185 tenge for USD1 plus/minus 3 tenge with some measures to level fluctuations in the short term" said the Tenrinews.  

But today the sudden devaluation must have created a panic as it fell to 212  just hours after opening trade.  

I truly hope that the exchange rate will stabilise close to the recommended 185 mark in the coming days and not stay above 200. 

 

Kazakhstan's economy was hailed by many as the  strongest in the region,  but now I wonder how this devalued currency will affect the economic outlook for the rest of 2014.  It will definitely have a great impact on all residences as large amounts of every day products are imported, and we can expect price increases across the board.

Either way ....in the end ordinary citizens, and especially foreigners that want to send money home, have  just received a 20-30% cut in salary ... even worse is.... if you where saving money 20- 30% of that is gone too!!!

Lets pray tomorrow is a better day for the KZT

For more information see:http://en.tengrinews.kz/finance/Currency-devaluation-in-Kazakhstan-25939/
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