Kazakhstan central bank reports tenge weakening, $968 mln in National Fund FX sales in April

The tenge weakened by 1.6% in April to 512.48 per US dollar, Kazakhstan’s central bank said in a market update on Thursday.

The average daily trading volume on the Kazakhstan Stock Exchange (KASE) increased slightly from $243 million to $246 million, with total monthly trading reaching $5.4 billion.

Foreign currency sales from the National Fund totaled $968 million in April, providing support for budget transfers. These sales accounted for 18% of total market volume, or around $44 million per day.

Based on preliminary government requests for May transfers, the central bank expects to sell between $950 million and $1.05 billion from the National Fund this month.

As part of sterilization efforts, the bank mirrored transactions equivalent to 213 billion tenge in April, with a similar volume expected in May.

No foreign exchange interventions were conducted during the month.

FX revenues sold by quasi-sovereign companies totaled $308 million. These firms continue to sell currency independently through second-tier banks.

To maintain the foreign currency share of the Unified Pension Savings Fund (ENPF) at 40%, the central bank purchased $250 million on the exchange in April—around 5% of total monthly trading. Purchases in May are not expected to exceed that amount.

The central bank reiterated its commitment to market neutrality and a flexible exchange rate regime to avoid macroeconomic imbalances and preserve foreign reserves.

N.Tebrizli