The National Bank of Kazakhstan will not admit a sharp tenge rate swings - the head of the Bank

/IRBIS, Nov.07, 99/ - REUTERS Agency informs about a press-conference of Grigory Marchenko, the head the National Bank of Kazakhstan. "There will be no any sharp changes of the tenge rate over the nearest months. I am compelled to disappoint those who sits and wait, that the dollar will fast rise in price", - has told Marchenko. He has mentioned, that some market participants, which have the future contracts on January 1 at the rate of 150-160 tenge for dollar, want rise the dollar rate. However the National Bank considers it as a private commercial problem. In the Marchenko's opinion, tenge has reached in November of an equilibrium rate at 137.90 tenge for dollar against of 140.22 tenge in the previous month. According to Marchenko, the devaluation rate in the following year will develop in compliance with the inflation rate. "By the end of the next year the planned inflation level is 9%, accordingly, level of devaluation, in the absence of sharp external shock, should make 9- 11%", - has told Marchenko. He has explained, that one of the "external shocks" can become the sharp weakening of the Russian rouble. There is also an optimistic script of development - in case if Kazakhstan will find an sufficient oil on the Caspian Kashagan deposit, where the international consortium OCIOC conducts now a drilling program. According to Marchenko, granting by the World Bank of the $175 million loan to Kazakhstan in the end of 1999 and the $100 million additional placement of Eurobonds have allowed to adapt for the November cancellation of the obligatory sale of 50% of currency export proceeds. In December Kazakhstan expects to receipt the World Bank credit and also $70 million from the Samsung corporation (for the right to control state block of KAZAKMYS shares). Besides about $75 million should be received through the Eurobonds additional placement in the next week. "The means, which the Ministry of Finance has now and will receive within December about 2 times exceed $200 million - the volume of the Eurobonds redemption payments on December 22", - has told Marchenko. These factors, in the Marchenko opinion, could have caused growth of the tenge rate. To prevent it, the National Bank is going to purchase foreign currency of the Ministry of Finance outside of the Exchange.