Kazakh National Bank starts currency interventions

The National Bank of Kazakhstan has begun foreign exchange interventions to stabilize the tenge after the national currency hit historic lows, the regulator said.

"Given the extremely low liquidity in the foreign exchange market and signs of heightened speculative pressure, the National Bank of Kazakhstan has commenced currency interventions," the statement reads.

The tenge weakened to 550 per U.S. dollar during trading on Wednesday, marking a 5.8% monthly and 4.7% annual depreciation.

Despite the decline, the bank noted favorable economic fundamentals, with global oil prices holding above $70 per barrel and a broader trend of U.S. dollar weakening.

"The current depreciation of the tenge does not reflect fundamental factors and indicates that the national currency is undervalued," the bank said.

The National Bank has pledged to act promptly to prevent sharp fluctuations in the exchange rate.