The collapse of the tenge exchange rate has become one of the largest in the world

Last week, the Kazakhstani tenge weakened significantly against the dollar, becoming one of the fastest falling currencies in the world.

This decline was the strongest among all currencies, with the exception of the Argentine peso, which lost more than 20% of its value over the same period.

The tenge fell against the background of the deterioration of the situation with the Russian ruble, which also showed a decline. The exchange rate of the dollar on August 14 exceeded 101 rubles at the auction of the Moscow exchange, the exchange rate of the European currency on the same day at the peak rose to 111.42 rubles.

However, the Russian currency was able to recoup some of its losses after the Bank of Russia unscheduled increased the interest rate from 8.5% to 12%, and initiatives were also taken to mandatory sale of export earnings. 

The depreciation of the tenge against the dollar continued for several days in a row. At the auction on August 17, the dollar exchange rate rose to 467.11 tenge at the maximum. This week, the currency of Kazakhstan has strengthened somewhat: today, the quotes of the USD/KZT pair are located at the level of 453.61 tenge.