Dollar in Kazakhstan decreases on account of export proceeds inflow

/REUTERS, Almaty, Tatyana Seroshtanova, January 24, 03/ - Kazakhstan tenge continued to grow during the leaving week due to export currency proceeds inflow, and also in accordance with budget and tax payments, dealers say. "The first reason - now there is a lot of export proceeds, the second one - money have gone to the budget", - said the treasurer of Alfa-bank Denis Ryltsev. Inflow of export proceeds to the republic, according to dealers, is promoted by high prices for oil, copper, aluminum, and also increase of volumes of oil and copper production in Kazakhstan, where mineral products take 60% in the structure of export. Market's participants also note National Bank's position, which lately several times said about possibility of nominal tenge strengthening and preservation of the current currency offer at the market. "In January of this year the National Bank do not strive for keeping dollar on a certain level and allows it to decrease in wide ranges, than in January of last year", - said chief dealer of Citibank Timur Gabasov. On Friday weighted average rate of Kazakhstan tenge at Kazakhstan stock exchange's main session rose to KZT155.12 from KZT155.18 at previous trades. Volume of trade decreased to $1.460 m from $8.860 m on Thursday. Since the beginning of the year tenge rose relative to US dollar by KZT0.77. In the opinion of some dealers, decrease of dollar in Kazakhstan is also promoted by current situation at the world markets, in particular decrease of dollar relative to euro and yen because of threat of war in Iraq. Market's participants say that the strengthening tenge and decrease of dollar's rate relative to other world currencies have activated the market of ready dollar in Kazakhstan. "I just talked with many exchange offices, which say that population now is actively sell dollar and buy euro, it strives for investing dollars into real estate", - said a dealer of one of Kazakhstan banks. Collaborators of a number of Alma-Ata's exchange offices mark increase of interest in ready euro, however they do not see significant increase of USD sales. "We work in usual procedure. Volumes of euro purchases have increased. On the reason euro is increasing, some of them believe that it is more profitable to keep funds in euro", - said an employee of one of Alma-Ata's exchange offices. Dealers note that tendency of tenge's growth in January is not traditional for during several years in this period there was stable demand for currency at the market. "This is the first January for last about eight years, when dollar has not increased but fallen", - said Gabasov from Citibank. It is difficult for market's participants to forecast situation at the market, saying that many things will depend on the National Bank. However most of them incline that till the end of January tenge will go on insignificant strengthening. [2003-01-24]