Tenge strengthens on higher oil prices – National Bank chiefKazakhstan’s tenge has strengthened on the back of higher oil prices, the National Bank Chairman Timur Suleimenov said Wednesday.“The tenge is strengthening. This reflects the structure of Kazakhstan’s economy. Oil is the main export commodity, accounting for more than 50% of export revenues. Production volumes have remained stable, while prices are rising. As oil prices increase, the situation is positive for us. It’s simple arithmetic,” Suleimenov told reporters in parliament.He said monetary policy, together with measures taken by the central bank and the government, as well as a stronger tenge, is contributing to disinflation.Addressing the risk of imported inflation amid higher oil prices, Suleimenov said any pass-through to consumer prices would likely be gradual and limited.“This is a long-term effect, and whether it will be fully reflected in the prices of imported goods remains to be seen, as market participants will adjust. For now, the overall economic and fiscal impact is positive,” he said.According to Suleimenov, the tenge may strengthen further if global oil prices rise significantly.“If global oil prices reach $200 per barrel, and we see a substantial inflow of export and foreign currency revenues, the national currency could strengthen further. A similar trend could emerge if prices reach $150 and remain at that level for an extended period,” he said.However, he noted that demand for imports — particularly in the context of large-scale investment projects requiring equipment and technology — would support demand for foreign currency.Suleimenov said no sharp fluctuations in the exchange rate are expected in the near term.“It closed at 478 [tenge per $1] yesterday and is now around 480, plus or minus. These are fundamentally justified, market-based levels at which it is likely to remain,” he said, adding that the National Bank is not conducting foreign exchange interventions. (ICE ALMATY)

Fonte notizia: INTERFAX