Kazakhstan's central bank to sell up to $500m from sovereign fund for December budget transferThe National Bank of Kazakhstan plans to sell between $400 million and $500 million in foreign currency from the National Fund in December to finance a transfer to the state budget, the central bank said on Sunday.The amount is based on preliminary forecast requests from the government and accounts for expected fiscal revenues. The regulator emphasized that all transactions with sovereign wealth fund resources adhere to a "principle of market neutrality," implying regular and uniform sales.This follows November sales of $600 million from the fund, which accounted for 10.7% of total market volume or approximately $30 million per day, successfully covering the required budget transfer.The tenge strengthened by 3.3% in November, closing the month at 512.57 KZT per U.S. dollar. The average daily trading volume on the Kazakhstan Stock Exchange rose to $280 million, with a monthly total of $5.6 billion.To sterilize the liquidity impact of these sales, the central bank sold foreign currency equivalent to 475 billion tenge in November and plans a similar 475-billion-tenge operation for December.The central bank did not conduct direct foreign exchange interventions in November. Quasi-public sector entities sold approximately $390 million last month under mandatory revenue conversion rules.Furthermore, the National Bank did not purchase U.S. dollars for the Unified Accumulative Pension Fund's investment portfolio, citing that the fund's foreign currency assets already exceed 40%. No such purchases are planned for December.The National Bank stated the tenge's short-term trajectory will depend on market expectations, quarterly tax payments, global market conditions, and geopolitical developments. It reaffirmed its commitment to a flexible exchange rate regime to prevent imbalances and preserve gold and foreign exchange reserves. (ICE ALMATY)

Fonte notizia: INTERFAX