Tenge is strengthening due to inflow of funds from loans and and exported proceeds

/Almaty bureau REUTERS, Tatyana Seroshtanova, November 18, 02/ - The rate of Kazakhstan tenge goes on strengthening due to inflows of means on syndicated loans, inflow of exported currency proceeds, and also National Bank's forecasts about further strengthening of the national currency relative to US dollar, dealers says. "Rate (of dollar) is falling on account of speech of the National Bank's Chairman, on clients' sales. Many bank have received different syndicated loans", - said on of Eurasian Bank's dealers. "Traders do not expect National Bank's support already, it is quite possible that banks are selling a part of their long positions (on dollar) and currency proceeds ", - said a dealer of ABN Amro bank. On Monday weighted average rate of Kazakhstan tenge at Kazakhstan stock exchange's main session rose to KZT154.19 for US dollar from 154.29 at Friday's trades. Volume of trades increased to $22.555 m from $19.780 m on Friday. According to market's participants' words, inflow of funds on borrowed syndicated loans impacts decrease of dollar. A number of Kazakhstan banks, among which Nurbank, AMB and Bank CenterCredit, have received from western banks credits of total volume equal to about $70 m. "Many (banks) have large volume of funds borrowed from foreign banks, which the banks did not sell till lately, but now, when there is falling, it has become unprofitable to keep long position on dollar, and all banks start selling", - said a dealer of Bank CenterCredit. Increase of volumes of Kazakhstan oil export, which, according to statistics agency's data, in January-September of this year rose by 22% in comparison with similar period of last year, also leads to increase of exported proceeds inflow. Statements of the Natioal Bank's Chairman Grigory Marchenko about strengthening of the national currency, which have sounded two times already in November, according to dealers' words, also impact the market's mood. "It (the National Bank) is constantly present at trades, smoothes fluctuations", - said a dealer of Bank CenterCredit. According to Marchenko's words, only during the first two weeks of November the National Bank purchased $110 m. Dealers expect further decrease of dollar to KZT154.00-154.10. "Till the end of this week strengthening may occur, but not significant. I think that the National Bank upholds the market all the same, decreasing support level every day. But anyway this support exists, that's why there will not be significant strengthening, maximum is 154.10", - said a dealer of ABN Amro bank. Dollar's quotations at the interbank market significantly differ from stock exchange's ones, their fluctuation in the first half of the day were 154.13-154.18 for $1. [2002-11-18]