National Bank of Kazakhstan will contain further growth of tenge - dealers

/REUTERS, Tatyana Seroshtanova, October 22, 04/ - National Bank of Kazakhstan will continue to support dollar, which is expected to fall till the end of the month due to USD inflow from bonds offerings and borrowing of syndicated loans by Kazakhstan banks and companies, dealers say. "National Bank contains (the rate), second tier banks try to push it down", - said dealer of Halyk bank. Weighted average rate of tenge grew on Friday at KASE to 132.50 per $1 from 132.60 one day before. Last Friday Weighted average rate of tenge was 132.93 per $1. Today volume of exchange's session grew to $35.800 m. from $29.955 m. on Thursday. "In this month the volume was great. There are still very many dollars, which will come to the market as borrowings", - said a dealer of ABN AMRO Bank Kazakhstan. In October several banks and companies declared about their intentions to issue bonds and borrow syndicated loans. They are BTA Ipoteka (subsidiary of bank TuranAlem), Kazkommertsbank, state company Intergas. "This week Kazkommertsbank's road-show is to be finished. Most probably, the currency will come the next week", - said Halyk bank's dealer. National Bank - the major operator of the currency market - still buy most part of USD at the exchange's trades. Its participation is the main preventing factor of the national currency's growth, which might have reached KZT125- 127 per $1 already. "I think the National Bank will go one containing. I think it will gradually pull the rate down by 10-15 tiyns", - said the dealer of ABN AMRO. As dealers say within the last two days the situation became stable at the market. "Most probably, the market has understood National Bank's intention and does not play for decreasing the rate strongly. The market is very stable for the last two days. Maybe people are tired and do not want to speculate", - said the dealer of ABN AMRO. Market's participants do not exclude rate correction, however they expect further falling of USD, which may reach KZT131-132 by the end of the year. "Sure, the National Bank will continue to try to contain (tenge strengthening), but 132 (tenge per $1) is coming. I think, in a pessimistic case the rate may reach 131 till the end of the year, but not further. The National Bank will not let it go further", - said Halyk bank's dealer. [2004-10-22]