/KASE, August 28, 13/ – Kazakhstan National Bank provided today to Kazakhstan Stock Exchange (KASE) the following information message:

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Beginning February 2011, Kazakhstan National Bank implements the currency policy within the regime of regulated free floating tenge exchange rate. This regime assumes participation of the National Bank in currency trading only for purposes of evening-out of surge in tenge exchange rate, without influencing on forming the exchange rate general trend, set by the market prerequisites.

During implementation of the currency policy Kazakhstan National Bank exerts an influence on the dynamics of tenge to US dollar exchange rate. Meanwhile, given the dynamic development of integration processes, trade and external economic relations of the Republic of Kazakhstan with main partners and strengthening of mutual fluctuations of main world currencies it is necessary to improve approaches to the rate policy.

In this connection, Kazakhstan National Bank beginning September 2, 2013 moves to the mechanism of national currency peg to the multi-currency basket that consists of US dollar, euro and Russian ruble.

The purpose of the multi-currency basket introduction in the Republic of Kazakhstan is the change of operational benchmark during implementation of the currency policy: instead pegging to the US dollar Kazakhstan National Bank will be oriented towards the dynamics of 3 currencies – US dollar, euro and Russian ruble. Kazakhstan National Bank along with fixing the currency basket value will continue fixing of official rates of tenge to US dollar, euro and Russian ruble in the prior regime.

The main advantage of the multi-currency basket regime introduction is gradual descent of the US dollar role on the internal currency market and external economic activities, decrease of speculative tone on the market and lightening of negative consequences resulted from inflow and outflow of speculative capital to the currency and money markets of the Republic of Kazakhstan, which temporarily (periodical) impact volatility of tenge to US dollar currency rate.

The multi-currency basket structure is defined as follows: US dollar stake – 70%, euro – 20%, Russian ruble – 10%. The multi-currency basket value will be calculated as a geometrical weighted average value of tenge exchange rates to US dollar, euro and Russian ruble as of the target date.

For calculation of the multi-currency basket value expressed in tenge will be used a weighted average exchange rate of tenge to US dollar, formed at the morning (main) session of the stock exchange as of 11-00 a.m., rates of tenge to euro and Russian ruble, calculated using a cross rate to the US dollar as of 03-00 p.m. As the operational benchmark the multi-currency basket value will be calculated regularly during each day based on results of each KASE trading session.

Under implementation of the monetary policy Kazakhstan National Bank will exercise interventions exerting an impact on the dynamic of tenge to US dollar exchange rate, thereby, regulating the multi-currency basket value. Progressively as the money market develops, trade cooperation extends and the national currency is used in international settlements the multi- currency basket value will be appropriately revised through changing the ratio of currencies involved to the multi-currency basket, and introduction of other countries currency (e.g., Chinese Yuan).

Kazakhstan National Bank

Department of Organizational Activities External and Public Relations

Tel.: 8 (727) 270-46-39 e-mail: press@nationalbank.kz

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[2013-08-28]