The dollar is at 530 tenge. Should Kazakhstanis be concerned about a potential default?

The Deputy Prime Minister and Minister of National Economy, Nurlan Baibazarov, made a statement regarding the situation in the currency market. According to him, the situation is stable, as reported by IA "NewTimes.kz".

“Overall, we are stable. No defaults are expected, either from the Government or the banking sector... The financial condition is generally stable, the state has reserves, so there is no question of any default. As for imports, yes, we are dependent on imports for non-food goods. Primarily, this includes construction materials, and there is import dependence on equipment and various types of machinery. We are actively working in this direction. We are implementing projects in the agro-industrial complex and the manufacturing sector to reduce import dependence on key types of goods that are primarily affected by currency exchange rate changes,” said Baibazarov during a press conference at the Government.

Read also: The dollar rate has reached 530 tenge

The head of the Ministry of National Economy assured that currency fluctuations are always present.

“These fluctuations have always occurred and will continue to happen. The question is how to respond and what preventive measures to take to mitigate the negative consequences of such currency exchange rate fluctuations. I can say that for the ongoing investment projects, such risks are generally absent because there are tools available. Companies and banks already know how to hedge themselves in such cases. As for citizens, the state ensures social protection for citizens, the budget for the next year has also increased, and social expenditures are being raised,” explained Baibazarov.

The Minister also noted that investing in "green" currency or not is a choice for each Kazakhstani citizen.

“This is probably a choice for each citizen, whether to buy or not to buy currency. In this case, I think it is not worth giving in to hype. We have already experienced such a situation in 2022, when people were buying at 600 on the secondary market and ended up in a negative financial position. The Government has tools, and we will take all necessary measures to mitigate the negative consequences on the economy as a whole and to socially protect citizens,” he added.

The National Bank of Kazakhstan made a statement regarding the rise in the dollar's value.