Currency - The Times Of Central Asia

Viewing results 1 - 6 of 102

Currency Kazakhstan Finance

Anti-Russia sanctions torpedo Kazakhstan’s currency

ASTANA (TCA) — The interdependency of Russia’s and Kazakhstan’s economies has caused the Kazakh tenge’s drop following the recent fall of the Russian ruble. We are republishing this article on the issue, written by Almaz Kumenov, originally published by Eurasianet: The woes of the Russian ruble have infected Kazakhstan, causing a tumble in the value of the tenge too. Authorities have sought to reassure the public, but to little avail. The tenge has dropped more than one-tenth in value against the dollar since the start of the summer. The rate of devaluation sped up in recent days. This has been accompanied by a surge in local demand for the greenback. According to the Rating.kz monitoring agency, the volume of dollars purchased at exchange bureaus in June was 2.4 times greater than in the previous month. On August 13, the National Bank announced that the fall of the tenge had been caused by geopolitical factors — namely, the latest round of US sanctions against a range of countries, including Russia, China and Turkey. The regulator said that if the need arises, it will intervene to restore some stability to the currency. This latest round of Russia sanctions approved earlier this month, which takes effect on August 22, takes aim at some key sectors, notably banking. The immediate effect was cause the ruble to fall to levels unseen for several years. Such is the level of interdependency between Russia and Kazakhstan’s economies that the tenge immediately followed suit. Astana is trying to make reassuring noises. National Economy Minister Timur Suleimenov said on August 16 that the United States had promised, as it readied the latest anti-Russian sanctions, that it would consider Kazakhstan’s economic interests. The tenge has had a bad decade. It has endured a string of sharp cataclysmic devaluations — in 2009, 2014 and 2015 — and every such event has led to knock-on rises in prices for retail goods.

Currency Kazakhstan Finance

Kazakhstan: In two minds about cryptocurrencies

ALMATY (TCA) — The emerging cryptocurrency business has both critics and new followers in Kazakhstan, while authorities warn the population of risks of investing in cryptocurrencies. We are republishing this article on the issue, written by Chris Rickleton, originally published by Eurasianet: The cryptocurrency business can be a flash in the pan. In Kazakhstan, few know that better than Zhomart Mametkarim. Late last year, with Bitcoin surging in value, he opened a cafe in the business capital, Almaty, and branded it a Crypto Hub. The establishment was intended as a celebration of all things cryptocurrency-related. Items on the menu included bit burgers and a take on beshbarmak, Kazakhstan’s beloved noodle and meat dish, which the cafe recast as bit barmak. Customers could even pay in the virtual currency, although few ever actually did. Mametkarim and his partners regularly hosted talks on cryptocurrencies and their underlying blockchain technology at the cafe. “People are mostly interested in how to earn money from trading,” Mametkarim told Eurasianet. While the menu was a bit of fun, the real aim of the venue was “to provide a space for the community interested in such things.” When Eurasianet met Mametkarim earlier this year, cryptocurrencies were very much on the up. Bitcoin, the most famous cryptocurrency, had just soared in value by 20 percent in less than a week to pass $10,000 for the first time after a precipitous slump from its all-time high of $19,783 in December. Bitcoin has had a rocky ride since then and is currently worth around $8,000 per unit. Other less prominent digital currencies have had a similarly torrid time. When Eurasianet dropped by Mametkarim’s cafe in June, it had changed hands and been rebranded. Mametkarim said he would hold crypto-related events at his office instead. The story of the Crypto Hub brand feels like a salutary warning against overexuberance. Kazakhstan is adopting an accordingly cautious stance. “In Kazakhstan, the National Bank is very conservative about this issue,” Daniyar Akishev, the young but circumspect chairman of the National Bank, said in March. “We want to prohibit the purchase and sale of the national currency for cryptocurrency. We want to prohibit the activity of exchanges on this segment and any kinds of mining.” Akishev was tilting at windmills on the trading front, since that is an area of business it is all but impossible to regulate entirely. But it was his remarks on mining that got some people’s hackles up. Mining, the series of electricity-hungry processes whereby networks of computers verify and record cryptocurrency transactions, is seen by some as a promising sector for Kazakhstan. “What is mining? Mining is data processing. Mining is calculation. Which of these does he want to ban?” asked Leonid Muravyev, vice president of the Blockchain and Crypto Technology Association of Kazakhstan, a lobby group based in Almaty. Kazakhstan is in pole position to exploit the global data-mining boom, according to Muravyev, whose association counts one of the largest cloud mining companies in the world, Genesis Mining, among...

Finance Eurasian Economic Union Currency Economy Central Asia Kazakhstan Russia Kyrgyzstan

Idea of EEU common currency: more political, less economic

BISHKEK (TCA) — The Russian ruble should be made the currency of settlements in the Eurasian Economic Union, Board Chairman of the Eurasian Development Bank (EDB) Andrey Belyaninov recently said at a conference of the Russian TV business channel RBC "Window of opportunities: Investments and new projects in Eurasia". Continue reading

Small Business Finance Economy Uzbekistan Currency

Uzbekistan: IFC issues first-ever local-currency bond to support Uzbek SMEs

TASHKENT (TCA) — IFC, a member of the World Bank Group, has issued its inaugural bond in Uzbek national currency, the Soum, raising UZS 80 billion — ten million USD equivalent — to expand lending for micro, small and medium enterprises in Uzbekistan. This is the first-ever Uzbek Soum-denominated transaction issued in the international markets, the IFC said. Continue reading

Economy Finance Kyrgyzstan Currency

Kyrgyzstan marks 25th anniversary of national currency

BISHKEK (TCA) — A quarter of a century ago, on May 10, 1993, Kyrgyzstan was among the first CIS countries to introduce its own currency. The correctness of this historic decision has been confirmed by time. The Kyrgyz som has proved its independence and consistency despite the periodic shocks of the economy, Chairman of the National Bank of the Kyrgyz Republic (NBKR) Tolkunbek Abdygulov said on May 7 at a meeting commemorating the 25th anniversary of the national currency. A stable national currency is among the most important economic indicators, Abdygulov said. The Kyrgyz som is also the most stable currency providing for a low level of inflation, said Marat Sultanov, who headed the National Bank in 1993. “When we were going to introduce our own currency, no one believed that it would be stable, and many predicted a failure,” Sultanov said. On May 10, Kyrgyzstan annually celebrates the National Currency Day. Best regional banknote A 2000-som commemorative banknote won a prestigious international competition "The Best Regional Banknote of 2018" among the countries of Central and Eastern Europe and the CIS. The banknote issued last November was dedicated to the 25th anniversary of Kyrgyzstan’s independence and the 25th anniversary of its National Bank. The banknote was awarded “for outstanding achievements in design, the use of modern protective elements in decoration, technological equipment and security of the banknote”. Developing banking system NBKR Chair Abdygulov spoke about the development of the banking system in the country. For a relatively short period since independence, the domestic banking system has proved its sustainability. The activity of banks is constantly improving, and they introduce innovative technologies and expand the range of services offered. The reserves of the National Bank exceed $2.18 billion, and this allows us to look confidently into the future, Abdygulov said earlier this year at a news conference in Bishkek. International currency reserves of Kyrgyzstan consist of more than ten types of currency, including SDR (special drawing rights of the IMF) and gold. They can be used for international settlements and payments, covering the balance of payments deficit and stabilizing the exchange rate of the national currency. The NBKR uses foreign exchange interventions to smooth sharp fluctuations in the exchange rate. Bank deposits of Kyrgyz citizens amounted to 121.6 billion soms at the end of 2017, the NBKR said. Back in 2012, the population kept 53.2 billion soms in banks, 71.1 billion soms in 2013, 85.9 billion in 2014, 109.4 billion in 2015, and 107 billion in 2016. The population now keeps 63.8 billion soms in the national currency and 57.8 billion soms in foreign currency. Innovative payments The analysis shows the annual growth of both the amount of taxes paid and the number of payments by innovative methods. The amount of payments to the state budget through peripheral devices has almost tripled and the number of payments has doubled over the first three months of 2018 compared to the same period in 2017. According to the NBKR, taxpayers carried out 65.14...

Finance Kazakhstan Currency

Kazakhstan considers complete ban of digital currencies

ASTANA (TCA) — The National Bank of Kazakhstan is taking a very hard-line approach toward the regulation of digital currency — or cryptocurrencies — in an effort to prohibit its exchange for Kazakhstan’s national currency, the tenge, and every type of cryptomining, Chairman of Kazakhstan’s National Bank Daniyar Akishev told Sputnik news agency on March 30. Continue reading