National Bank gold reserves grew 7.6 %, make $19,625.0 m. in February 2009

/IRBIS, Dinara Mukasheva, February 10, 09/ - The National Bank of Kazakhstan disseminated the press release informing net international reserves (GFER) of the National Bank, excluding money of the National Fund of the Republic of Kazakhstan, in current prices increased 7.6 % to $19,625.0 m. in February 2009. It is noted in the press release that selling of currency on the domestic currency market and operations for servicing of external debt of the Government were neutralized by inflows of currency on the accounts of Government in the National Bank and increase of remains on correspondent accounts of commercial banks in foreign currency in the National Bank and reconversion of assets of the National Fund in foreign currency into currency assets of the National Bank. Assets in gold increased by 7.6 % as a result of increase of its price on the world markets by 7.6 %. International reserves of the country as a whole (in current prices), including money of National Funds (by preliminary data $22.3 bn.) decreased by 9.2 % to $42.0 bn. since the beginning of the month (since year beginning fall by 10.2 %). At that, assets of the National Fund in national currency made KZT621.6 bn., at the expense of bonds purchase of NWF Samruk-Kazyna and NA KazAgro in portfolio of the National Fund. Growth of net gold reserves of the National Bank in February 2009 caused expanding of monetary base by 10.8 % to KZT2,252.1 bn. (since year beginning - expanding 53.1 %). In the structure of monetary base, remainders at the correspondent accounts of commercial banks increased in the National Bank at the expense of money, provided by NWF Samruk- Kazyna. Moreover, remainders at the current accounts of NWF Samruk- Kazyna increased in the National Bank. Expanding of narrow monetary base n February 2009 (by 11.1 % to KZT2,227.7 bn.) corresponds to the change of monetary base, as term deposits of commercial banks in the National Bank have changed insignificantly (by KZT3.0 bn.). For January 2009 monetary base reduced by 4.7 % to KZT5,970.4 bn. at the expense of decreasing both net foreign and domestic assets of banking system. In the structure of net foreign assets of banking system in January 2009, net gold reserves of the National Bank increased, compared to December 2008, when net foreign assets of the banks decreased. In the structure of domestic assets of banking system, requirements both to the Government and to other economy sectors decreased. For January 2009, cash in circulation reduced by 16.8 % (by KZT143.7 bn.) to KZT714.1 bn. The fall is historically the biggest moth fall both in absolute and relative expression. Apart from traditional season fall in volume in January, compared to December, the main reason of reduce of cash in circulation became the sale of foreign currency by swap bodies. January the current year, net-flows of cash in cash desks of the banks reached historical maximum - KZT193.4 bn or $1.6 bn. The growth made 33.8 % compared to December 2008 and 2.1 times compared to January 2008. Deposits in banking system decreased by 2.8 % to KZT5,256.3 bn. Exceeding rates of reducing cash in circulation compared to the rates of deposits reducing caused the growth of deposits` stake in the structure of monetary base from 86.3 % in December 2008 to 88.0 % in January 2009. Money multiplier fell from 4.26 in December 2008 to 2.94 in January, 2009 due to significant expanding of monetary base on insignificant reduce of money supply. Data on the dynamics of the National Bank's international reserves and monetary base (current prices) are given below. --------------------------------------------------------------- Change (in %) ---------------------- February for a since year for a Indicator 2009 month beginning year ------------------------------ --------- ----- ---------- ----- Net international reserves, $m 19,625.00 +7.6 +12.9 +3.1 including: net assets in hard currency* 17,472.00 +7.8 +12.5 +3.2 Gold 2,186.00 +7.6 +18.0 +3.6 Monetary base, KZT bn. 2,252.10 +10.8 +53.8 +42.6 Narrow monetary base, KZT bn. 2,227.70 - +53.2 +45.4 KZT/USD (at the end of the period) 150.43 +23.8 +25.0 +24.5 Price for gold (per 1 Troy ounce in USD) 945.63 +7.6 +14.1 -2.4 --------------------------------------------------------------- *net assets in hard currency is difference between gross assets and liabilities in hard currency; [2009-03-10]