Decline in currency demand and investment inflow support tenge strengthening – Kazakhstan's National BankThe strengthening of the tenge in the first quarter of 2026 was driven by reduced demand for foreign currency, increased supply, and investment inflows into tenge-denominated assets, said Aliya Moldabekova, Deputy CEO of the National Bank of Kazakhstan."Overall, the tenge's strengthening is the result of a balance: demand for currency decreased, supply increased, interest in tenge assets grew, and the external environment remains favorable," Moldabekova said in comments released by the National Bank's press service on Friday.She noted that the National Bank sees no factors requiring intervention in exchange rate formation. In her view, the market is functioning within fundamental economic conditions.According to Moldabekova, the first quarter saw a notable decline in currency demand from both households and businesses."Companies have changed their behavior: in the first quarter of 2025, they remained net buyers overall, but in the first quarter of 2026, they became net sellers of currency. The year-on-year reversal in quarterly position totaled about $1.1 billion," the Deputy Chairperson said.Moldabekova emphasized that the tenge's strengthening is partly explained by seasonal factors. Business activity remains moderate at the start of the year, which supports the national currency.At the same time, the effect was amplified in 2026 by external factors. In particular, oil prices, amid geopolitical tensions, are holding above $90–95 per barrel, supporting export revenues and currency inflows into the country.Another significant factor was the inflow of foreign investment into government securities. Since the beginning of the year, non-resident investments have increased by approximately 375 billion tenge, reaching 2.2 trillion tenge."Foreign investors are moving into tenge instruments, converting currency, and thereby strengthening the tenge's position," Moldabekova explained.She added that global conditions are also influencing capital reallocation. Due to developments in the Middle East, some investors are shifting into currently more attractive instruments, including Kazakhstani bonds.The National Bank noted that the regulator's operations are routine in nature. These include currency sales under the mirroring mechanism , about $2.1 billion in the first quarter, as well as transfers from the National Fund – approximately $1.2 billion."These operations provide stable and predictable foreign currency supply in the market and are not aimed at targeting any specific exchange rate level," Moldabekova said. (ICE ALMATY)

Fonte notizia: INTERFAX