Dealers expect continuation of dollar increase in Kazakhstan till the end of the year

/Almaty bureau REUTERS, Tatyana Seroshtanova, December 20, 02/ - Tendency of decrease of Kazakhstan tenge's rate relative to US dollar, which appeared on Friday, will remain at money market on the next - the last in this year - working week as well, dealers say. "The next week the rate (dollar) will be increasing in a way. Bank will transfer tenge remainders to currency assets", - said a dealer of Eurasian bank Vladimir Zakhvatov. "The next week the rate will sharply go up because bank TuranAlem and Kazkommertsbank will purchase currency for coupon payments on their eurobonds", - believes a representative of a western investment company. However in the opinion of some market's participants, Kazkommertsbank has provided itself with currency already, having received syndicated loan for $150 m. Kazkommertsbank and bank TuranAlem are two of three largest Kazakhstan banks. On December 22 Kazkommertsbank will make payment of euronotes coupon, issue volume of which is equal to $20 m. Bank TuranAlem intends to make on December 28 payment of euronotes coupon, issue volume - $100 m. Inflow of funds of pension funds and pension assets management companies till the end of the year can also promote to dollar's strengthening. However the money market's participants also note factors, which will prevent dollar from growing. Among them are Christmas holidays in the USA and Europe, which coincide with the middle of the week, and also carrying out by the National Bank forecasted indicators, which provides for the end of the year dollar's rate on the level of 157.00 for $1. "I have such the impression that the next week National Bank may make resolute effort, and the market will close the year at KZT156.20 for $1", - assumed a dealer of Bank Caspian. On Friday Kazakhstan tenge's rate decreased at Kazakhstan stock exchange's main session to 155.54 for dollar from KZT154.27. Volume of trades fell to $5.695 m from $11.175 m. Presence of some large dealers on Friday at the market, who were playing for dollar's increase, caused "ungrounded high increase of dollar ", dealers say. After stock exchange's session there was some correction of the rate at interbank market and dollar's quotations were varying within KZT155.39-155.44. "On previous days dollar was falling on account of exporters' proceeds from clients' inflows. Today the volume at the stock exchange is small. There seem to be speculative mood at the market", - said a dealer of one Kazakhstan bank. [2002-12-20]