The National Bank of Kazakhstan keeps increasing its gold and foreign exchange reserves by purchasing dollars in the domestic market

/IRBIS, Aug.23, 99/ - The National Bank of Kazakhstan in its press-release (#052) issued on August 23 states that: "The growth of the reserves by $12.1 million was due to replenishment of currency reserves by $27.7 million mainly through buying the currency in the domestic market and decrease in gold assets by $15 mln. Decrease in gold reserves is due to the fall in gold prices, and due to swap operations with gold carried out by the National Bank in foreign markets". Numbers given by the National Bank show that the share of the gold in gross gold and foreign currency reserves in current prices decreased during the last week from 28.2 to 27.1 %. Net reserves has decreased from 43.6 to 41.5%. It is also stated in the press-release that "present stability in the currency market had an impact on the growth of the monetary base, which has expanded from August 13 to August 20 by 2.5% (2.2 bln. tenge)". Following is a table that shows the gold and foreign exchange reserves of the National Bank as of August 20 1999: In current prices In constant prices ------------------- ------------------- 20.08.99 13.08.99 20.08.99 13.08.99 ------------------------ -------- -------- -------- -------- Gross gold and foreign exchange reserves, mln USD 1598.2 1586.1 1646.4 1633.1 namely: assets in hard currency 1165.8 1138.1 1165.8 1138.1 gold 432.4 448.0 480.6 494.9 Net gold and foreign exchange reserves, mln USD ** 1040.9 1028.4 1089.1 1075.3 Monetary base, bln. tenge 88.7 86.5 88.7 86.5 KZT/USD (at the end of the period) 131.9 131.9 83.8 83.8 Price of gold (for 1 Trojan ounce in USD) 258.60 260.20 287.45 287.45 ------------------------ -------- -------- -------- -------- * gold is shown at prices for the end of 1998 ($ 287.45 for 1 tr. ounce); ** net gold and foreign exchange reserves is the difference between gross reserves and obligations in hard currency.