USD/KZT at closing of the day - 131.63 / 131.70 (indicators)

/IRBIS, Aug.23, 99/ - According to REUTERS, at closing of over-the-counter foreign exchange market of Kazakhstan on August 23 tenge quotations towards US dollar have made 131.63 (demand) / 131.70 (supply) tenge per dollar with the weighted average Exchange's price of 131.60 (-0.24) and the quotes at closing of the Exchange's session of 131.59 / 131.60. Based on dealers' over-the-counter market quotations, tenge gained 12 points against American currency both on demand and supply compared to Friday's closing. After the trades at KASE the dollar slightly strengthened against tenge. At the end of the day demand price was above the weighted average by 3 points, supply price was above by 10 points. Spreads on the over-the-counter market varied from 2 to 12 points, 7 points on average. They do not differ much from the spreads on Friday. Quotations for interbank "overnight" tenge deposits were fixed at 3 APR on demand and 6 APR on offer. Dealers notice a slight shortage of tenge for some banks. The trend shows possibility of reversal towards strengthening dollar on trades at KASE on Tuesday. Analysis of major market makers' behavior tells this story as well. As mentioned earlier, demand for US dollars from the banks of the second tier increased compared to last two trades. Remarkable strengthening of tenge during last three days makes the banks of the second tier to buy cheapened dollars which are interested in "swinging" the market and in maximum capitalization on exchange rate differences. Fast strengthening of tenge (as well as its fast weakening) is not favorable to the government today. Therefore, increase of dollar exchange rate shortly in near future under the influence of speculative acts of the banks is quite possible. However, at this situation the fluctuations of dollar exchange rate within 50 points (0.50 tenge) in both directions are not considered important by the market; these are its normal fluctuations. Therefore, tenge may remain stable in the short run. No factors that could noticeably change the situation exist so far.