/REUTERS, Almaty, Oljas Auezov, April 5, 06/ - On Wednesday the leaders of the National Bank warned the foreign banks about inadmissibility of speculation on the local market, where the volume of operations abruptly grew.

"There exist the precedents, when foreigners sell dollars on Kazakhstan market, make up big amount of money and allocate deposits in banks", - Medet Sartbayev, the deputy chairman of the National Bank, said in the press conference.

He said, the deposits of non-residents, at this account also of the huge foreign banks, started growing last year.

The National Bank has purchased about $3 bn., keeping on the stable level the fast strengthening of tenge.

Inflow of funds to Kazakhstan economy, mainly from oil and metal export, pursues the growth of inflation rate that arouses the anxiety of the government.

"If foreign investors are interested in coming here and receive profit, which can be compared with GDP growth rate in addition to extra profitability from the strengthening of tenge, we welcome such investments," - said Sartbayev.

"However, if these positions were created for the purpose to make up any speculative operation, the National Bank have enough authority to react on such kind of interventionists, how it was, for example, in the period of Asian crisis", - he added.

"If they are going to speculate, we will block such a possibility."

At the same time Anvar Saidenov, the chairman of the National bank, assumed that the volume of non-residents' transactions doesn't arouse the anxiety.

"I think that it is possible to speak in the context of amounts within $500-700 bn.," - concluded the head of the National Bank.

[2006-04-05]