Dealers in Kazakhstan wait for growth of tenge because of high prices for oil

/REUTERS, Almaty, Tatyana Seroshtanova, February 17, 03/ - Decrease of dollar's rate relative to tenge at Kazakhstan money market because of large inflow of exporters' currency proceeds, oil and metals may continue till regulation of Iraq's conflict, dealers say. "Dollar's decrease will go on, while the situation with oil is preserved, which exceeds $30 (per barrel). It seems to me only in case of solution of the problem concerning Iraq something can change, our oil inflows come", - said a dealer of bank CenterCredit Aibek Burabayev. More than 60% of Kazakhstan export fall to the share of mineral products. On Monday weighted average rate of Kazakhstan tenge at the main session of Kazakhstan sto9ck exchange rose to USD153.27 for US dollar from 153.67 at Friday's trades. Tenge began the year 2003 on 155.89 for $1. Volume of trades on Monday remained on the extremely high for domestic market level though it fell to $28.36 m from $47.29 m at previous session. Attempts of some market's participants to change the trend and play for dollar's increase still come to grief because of absence of real purchasers at the market and growing volume of dollar offer, dealers say. Activation of currency sale was also promoted by Friday's statement of the National bank's head. Grigory Marchenko said Reuters that the continued falling of dollar's rate relative to tenge did not cause worry of the National Bank, which had bought at markets $160 m since the beginning of the year because dollar was depreciating relative to other main for Kazakhstan currencies as well - euro and Russian rouble. "Now the strong, aggressive dollar's falling goes on. On Frida the National Bank's head commented on situation on tenge having said it did not cause anxiety - on account of that news some banks started selling", - said Burabayev. According to the words of market's participants, decision of Kazakhstan Government about removing of prohibition for mazut export will also cause inflow of exported proceeds. "Last week there was a news about removing of limits for mazut export. In general volumes are small there, but nonetheless, again additional currency proceeds", - said dealer of Temirbank Igor Romanenko. Before introduction of traditional winter prohibition Kazakhstan exported every month about 150,000 tons of mazut. Romanenko added that preservation f the tendency at the market was also promoted by situation in neighboring Russia, where monetary authorities more and more often spoke in favor of strengthening of real rouble's rate. For the short-term period dealers forecast further tenge strengthening to 153.00 for $1. "Good support level - 152.80-153.00 for $1. Today in the morning we passed with 20 kopecks (tiyns) without problems. We can be there today already. Interbank (before-dinner) quotations fluctuate within KZT153.15/153.25 for $1", - said dealer of bank CenterCredit. [2003-02-17]