Tenge drops by more than a third

Tenge drops by more than a third

During today's morning trading on the Kazakhstan Currency Stock Exchange, the tenge dropped by 35.5%.

Its rate against the dollar fell from 188.38 to 255.26 tenge. The trading volume during this drop amounted to 115.55 million dollars.

This was preceded by a previously made statement of Prime Minister of Kazakhstan Karim Massimov about the transition to the new republic's monetary policy, which is based on a free-floating exchange rate, and the abolition of  currency corridor, RIA Novosti reported.

"From August 20 of this year, it is decided to launch a new economic policy based on inflation targeting and to cancel the currency corridor. The change of the tenge exchange rate will depend on the state of the global economy," he said, reading a joint statement of the government and the National Bank.

Masimov explained that "the new economic policy in conditions of fundamental negative changes in the global economy requires a new monetary policy to ensure a balance between economic growth and price stability."

In addition, the Prime Minister instructed to carry out overall coordination of operational measures to his first deputy Bakytzhan Sagintayev, and on social issues to Deputy Prime Minister Berdybek Saparbayev.

Masimov also reported that this Saturday a meeting of the government will be held, "at which a package of structural reforms, operational measures, budgetary matters and future macroeconomic policies will be discussed."