Degree of monetarization in Kazakhstan may reach 11.7% in 1999

/IRBIS, Dec.8, 99/ - REUTERS informs, with the reference to public relations department of the National Bank, that monetarization ratio of Kazakhstani economy - ratio of the money to GDP - may increase to 11.7 percent in late 1999, up from 10.4 percent at the end of the third quarter of 1999. The press-release reads: "By preliminary assessments, degree of monetarization is estimated to reach 11.7 percent by the end of the year (25 percent with dollar savings of the population)". It is observed that the monetary base was expanding since the introduction of floating exchange rate of tenge in April of 1999. It is believed the main factor of its expansion is growth in net international reserves. Gold and foreign currency reserves of the National Bank is up $302.2 mln from April to November, at $1.9 bln as of December 1, 1999. Gold and foreign currency reserves are expected to reach $2.0 bln (the biggest reserves were accumulated in October of 1997 - $2.4 bln) by the end of the year. Monetary base grew 42.6 percent amounting 211.7 bln tenge from the beginning of the year, with deposits growing up to 64.4 percent by November 1, 1999, up from 53.7 percent at the beginning of 1999.