The Economy of Kazakhstan
The Tenge and Financial Stability
In 2015 Kazakhstan let its currency float after oil prices fell, and it has since used inflation targeting and bank reforms.
Currency shocks.
2015
The tenge lost nearly half its value after being floated.
Banks
Bad loans and dollar debts caused bank problems, followed by clean-up and recapitalisation.
Inflation targeting
The central bank adopted an inflation target and higher rates in recent years.
Dollarisation
Many savings are still held in foreign currency.
A devaluation
Imports became more expensive overnight.
Ignoring currency risk in resource economies
Commodity price swings lead to currency shocks.
Key takeaways
- The tenge was floated in 2015.
- Bank problems followed.
- Inflation targeting was adopted.
- Dollarisation persists.
No recording for this one yet - EconReader can read it aloud for you.