Question

Kazakhstan Exchange Rate Regime

explain in 10-15 sentences main information about it

include references

Answer 1

Tenge is the currency of Kazakhstan from 15th November 1993. It replaced Soviet Ruble which is in circulation till date in Kazakhstan. The initial rate of exchange fixed between these currencies was 1 tenge = 500 Soviet ruble. The currency code of tenge is KZT and the symbol is₸ . Initially the country followed a managed floating exchange rate fixation mechanism. In September 2013 the National Bank of Kazakhstan changed the managed floating mechanism into pegged exchange rate system. The currencies were pegged to US dollar and Russian ruble. In between 1999 and 2014 the National Bank of Kazakhstan devalued its currency three times. The tenge became a free floating currency in August 2015 when the National Bank of Kazakhstan decided to give away the currency band. The initiation of floating exchange rate system caused a sudden decline of its value by 30% in a single day. Today’s (20/10/2020) exchange rate of tenge against major currencies are:- ₸ 1 = $ 0.00233, ₸ 1 = €0.00197, ₸ 1 =£0.00180, ₸ 1 = ₽ 0.181, etc.

References

https://www.xe.com/currency/kzt-kazakhstani-tenge

https://en.wikipedia.org/wiki/Kazakhstani_tenge

https://www.reuters.com/article/us-kazakhstan-tenge-idUSKCN0QP0PN20150820