The National Bank will sell nearly one billion dollars from the National Fund to support the budget.

As of the end of November, the tenge depreciated by 5% to 512.52 tenge per US dollar. The average daily trading volume on the Kazakhstan Stock Exchange decreased from 278 to 262 million dollars over the month. The total trading volume amounted to 5.5 billion dollars.

“Currency sales from the National Fund to support transfers to the republican budget in November amounted to 1,260 million US dollars. The share of sales from the National Fund accounted for 23% of the total trading volume, averaging no more than 60 million US dollars per day. According to preliminary forecasts from the government for the allocation of transfers to the republican budget, the National Bank anticipates selling currency from the National Fund in the range of 800 to 900 million dollars in December 2024,” the National Bank stated.

To enhance the balance of the currency market, the requirement for the mandatory sale of 50% of foreign exchange earnings by entities in the quasi-state sector was reinstated on November 19, 2024. Quasi-state sector companies are responsible for selling on the currency market through second-tier banks. Additionally, as part of the government's decision to purchase shares of Kazatomprom JSC for the National Fund, the ministry sold 133.8 million dollars from the National Bank's gold and foreign exchange reserves in November.

“There was an increase in demand for foreign currency in the domestic currency market from economic agents, coupled with limited supply, particularly against the backdrop of the exchange rate surpassing a psychological level. In light of the deterioration of several fundamental factors, to prevent destabilizing fluctuations, smooth out excessive volatility of the tenge exchange rate, and ensure the supply of foreign currency, the National Bank conducted foreign exchange interventions from November 15 to 28. The volume of currency sold at the end of the month amounted to 1,047 million US dollars,” the agency reported.

The National Bank noted that the regulator will continue to provide complete information on all operations conducted in the currency market. In the short term, the dynamics of the tenge will depend on market participants' expectations, quarterly tax payments, the situation in global markets, and changes in the geopolitical landscape.