Kazakh Tenge to strengthen its positions, experts predict
The Kazakh Tenge strengthened due to the rising oil prices. Today, the foreign exchange trading on the Kazakhstan stock exchange opened at a price of 417 Tenge per U.S. Dollar (USD) and this is far from the limit. Experts predict that this week the Kazakh national currency might strengthen even more. In particular, the economist Olzhas Tuleuov claims that the U.S. Dollar price may amount to 413 to 415 Tenge (KZT).
“This will happen due to the beginning of the quarterly tax week. By May 25, the exporters and domestic market oriented companies will make payments equal to more than US$3 billion (or 1.2 trillion Tenge) to the Kazakhstan’s National Fund and the state budget. They will pay the corporate income tax and a duty for mining, as well as environment emission fees and so on,” Tuleuov explains.
He also notes that after the tax week ends the Tenge exchange rate usually returns to its previous level.
The finance expert Alexander Yanyuk also shared his opinion on the Kazakh national currency’s position.
“Last week, the Kazakh Tenge slightly strengthened its value against the U.S. Dollar, but already this week the Tenge is likely to show a stronger tendency for growth. This is due to the improvement of the situation on the oil market and the economic revitalization after the COVID-19 state of emergency lifting. Last week, it was reported that the Kazakh government is discussing the introduction of progressive income tax rates. Investors are closely following the development of this issue, since the tax rates can significantly change the investment attractiveness of the country, for better or for worth,” Yuanyuk says.
The positions of the Russian rouble, Norwegian krone, Mexican peso and Canadian dollar have been also gradually strengthening due to the rising oil prices.