U.S. dollar market of Kazakhstan: day results

/IRBIS, Dec.28, 00/ - Following is the table of major indicators of Kazakhstan market for U.S. dollar (more than 98% of country's all currency market). -------------------------------------------------------------------------------- Trades in U.S. dollars at Kazakhstan stock exchange (KASE) -------------------------------------------------------------------------------- Instrument USD TOD USD TOD USD TOM USD SPOT Session Main Additional. Evening Evening Time of trades (AST) 10:15-11:00 11:30-15:30 14:00-18:00 14:00-18:00 Weighted average rate 145.25(+0.12) NA - - Volume of session (mln) 15.180(+8.045) 1.645(-1.755) 0 0 Bid 145.25 145.33 - - Offer 145.26 145.38 - - Number of participants 19 12 0 0 -------------------------------------------------------------------------------- U.S. dollar quotations on interbank over-the-counter market in information system REUTERS at closing of KASE sessions (disregarding settlement dates) -------------------------------------------------------------------------------- Bid 145.25 145.34 145.36 Offer 145.35 145.42 145.41 -------------------------------------------------------------------------------- Notes: Best bid and offer prices at closing of the trades are shown as the Exchange quotations. By indicative interbank quotations of the US dollar in REUTERS information system, tenge lost 29 points on ask bid and 26 points on offer bid of the American currency in comparison with previous day closing. Today banks demonstrated high demand for the US dollar. The morning session was most active where NBK again had to compensate lack of dollar. Considering operations of NBK for last several days, it looks like the targets were shifted from regulation of the exchange rate to sterilization of the correspondent accounts of banks through selling of international reserves. This implies balancing between international reserves and money supply. In other words, NBK regulates money in circulation. The recent dollar growth could positively affect exporters in conditions of oil price fall. The level of decline looks too close to the critical for Kazakhstan. If NBK was guided by other intentions, it could support tenge at any level considering the volume of international reserves. IRBIS assumes that active trades were stipulated by sharply increased demand on dollars from population. This stimulates banks to buy non-cash dollars on KASE and sell them in cash. But today there was another reason for trades. There are four days of holidays and banks are inclined to place dollars on deposits in USA. Increased speculative potential of dollar conditioned concentration of funds on the forex market. On the seven GB auction of the week issuers raised KZT2.4 bln. The redemption volume amounted to KZT4.6 bln (excluding MEAKAM coupon) provided banks with KZT2.1 bln. Considering these numbers demand of banks will be high tomorrow as well. There are no signs of tenge deficit on the market. Considering above mentioned facts, IRBIS analysts inclined that dollar rate will gain several points on Friday. The activity will be closed to today's market.