Kazakhstan currency market is looking for direction in expectation of dollar' inflow

/REUTERS, Almaty, Tatyana Seroshtanova, 11.04.03/ - Kazakhstan currency market finishes the week, which is notable with big volatility, having never determined direction of the rate's movement on account of increased sales of currency proceeds for tax and budget payments and the National Bank's statements about readiness to prevent abrupt tenge's strengthening from occurring, dealers say. "At present the market is not very liquid. Many banks close after the stock exchange. It's hard to say what will happen the next week. Everything will depend on the National Bank. I think it will not let tenge abrupt strengthen", - said one of Eurasian bank's dealers. Kazakhstan tenge's weighted average rate increased on Kazakhstan stock exchange's Friday's trades up to 152.14 for $1 from 152.25 tenge on previous session. Volume of trades rose up to $9.480 m. from $7.385 m. On Thursday. The current week, according to dealers' words, is characterized by high volatility. Thus, on Tuesday weighted average dollar's rate fell down to KZT152.13 from 152.38 on Monday, and afterwards it rose again up to KZT152.28 on Wednesday. On Tuesday the National bank, whose presence was almost not felt at the market during latest time, came back to the stock exchange and interbank market having purchased $25 m., which were record for last weeks. On Wednesday the National bank's head Grigory Marchenko, commenting on Tuesday's situation, kept from exact forecast exchange rate's dynamics, however he assured again that in case the tendency of the national currency's growth occurs again the country's head bank intends to smooth abrupt fluctuations and prevent abrupt tenge's strengthening from occurring. "Actually, taking into account the National Bank's mood, dollar will not fall deeply, and even if it does - it will fall fluently. Now there is no obvious pressure from outside of sellers yet", - said treasurer of Alfa-bank Denis Ryltsev. Dealers find it difficult to forecast the situation for the next week and note that at present a part of banks have taken waiting position. "The market is rather nervous - there are no big volumes either in this or that direction", - Ryltsev said. According to estimations of one of Kazkommertsbank's dealers, main sales of currency proceeds in this month are yet to come. "Probably the period, when it's time to sell dollars, has not come yet. Bank are waiting for currency proceeds and on the basis of it they play downward", - he said. Some dealers expect preservation of quotations the next week on the level of 151.80-152.30 per US dollar. "Everything will depend on clients: what sales and volumes will be like", - said the Kazkommertsbank's dealer. [2003-04-11]