Last week USD supply has balanced demand on the Kazakhstan market

/IRBIS, Dec.10, 99, Andrey Tsaliuk/ - Last week on the Exchange market of republic has illustrated its equilibrium condition. First half of week has passed at a rather great dollar demand from the part of the banks of the second tier, which have apprehended a turn in a dollar rate trend and have begun to open a long positions. On Monday on KASE the strong demand has been observed. However on Tuesday it has started to decrease in parallel with the trade volume. The dollar rate has been growing however speed of this growth has decreased essentially. On Wednesday the market was not active at the minimum volume of transactions. The dollar rate was stabilized. Obliged to pay for the State Securities bought on the week's auctions (including notes of the National Bank) banks preferred to refrain from the further currency positions lengthening. In result after dinner the dollar rate in the interbank market was below Exchange's, and the dollar demand was practically absent. Most likely, this factor caused the rather big USD supply on Thursday's and Friday's trades on KASE from the site of the Bank of the second tier. The IRBIS's analysts do not exclude that these dollars belonged to the exporters. The demand could not balance the supply, and dollar started to lose points. The week's events completely confirmed the forecasts of the head and dealers of the National Bank. They approved that the dollar strengthening tendency could not be too significant at the existing dollar market saturation. There are no objective preconditions for a sharp growth. The current trend of devaluation is evaluated by 2.2% p.a., whereas the rates in the primary and secondary State Securities markets change from 13.4% (the shortest) to 16.5% (longest securities). In the Euronotes market the yield in a dollar equivalent is kept at the level of 10-12% p.a. Therefore, the banks and their customers prefer State Securities, and the volume of transactions in them grows in all sectors. In the IRBIS experts opinion, there will be no any cardinal changes in the next week on the Exchange market. Some dollar rate oscillation are possible at the minimum speed of its changes.