On April 1, 2024, Kazakhstan's National Bank (NBK) provided insights on the country's currency market situation. According to NBK, the tenge strengthened by 0.9% in March, reaching 446.77 tenge per dollar. The average daily trading volume on the Kazakhstan Stock Exchange increased from $187 million to $225 million, with a total trading volume of $3.8 billion.
The government's preliminary forecast indicates that in April 2024, NBK is expected to sell currency from the National Fund ranging from $1 billion to $1.1 billion for republican budget transfers. Additionally, currency purchases to maintain the currency share of pension assets by the National Pension Fund of Kazakhstan (ENPF) are anticipated to range from $450 million to $500 million in April.
NBK reported that currency sales from the National Fund for budget transfers in March amounted to $748 million, reaching 19% of the total trading volume and not exceeding $44 million per day. To sustain the currency share of ENPF pension assets at 30%, NBK continued purchasing foreign currency in March with a total of $500 million, approximately 13% of the market's total volume.
The National Bank did not conduct any currency interventions in March. NBK emphasized that the tenge's short-term dynamics will depend on market participants' expectations, quarterly tax payments, global market conditions, and geopolitical developments.
NBK reaffirmed its commitment to a flexible exchange rate regime to prevent imbalances and ensure the safety of gold and foreign exchange reserves. Earlier, NBK noted a slowdown in annual inflation in most regions of Kazakhstan in February 2024, with the highest figures recorded in the Karaganda and East Kazakhstan regions.
