National Bank of Kazakhstan contains growth of tenge due to dollars inflow

/REUTERS, Almaty, Tatyana Seroshtanova, May 8, 03/ - Currency interventions of the National bank of Kazakhstan at domestic market contain growth of Kazakhstan tenge relative to US dollar, dealers say, pointing to receipt of funds from Kazakhstan banks' eurobonds floatation, which became the reason of currency inflow. "Sellers prevail over buyers. A plenty of currency has concentrated in our Kazakhstan banks. In particular, the proceeds of Kazkommertsbank on eurobonds comes", - one of Halyk Bank's dealers said. National Bank of Kazakhstan, which has bought $70 m. at the market since the beginning of May, actively participates in trades, smoothing fluctuations of the exchange rate. "Yesterday the National Bank was containing (decrease of US dollar) during the first session ", - Halyk Bank's dealer added. On Thursday weighted average rate of tenge during the main (first) session of Kazakhstan stock exchange rose up to 151.33 for $1 from KZT151.35 during the previous session. On last Wednesday, April 30, weighted average rate of tenge was 151.76 for $1. Volume of trades decreased on Thursday to $12.810 m. from $38.165 m. on Wednesday. Together with exported proceeds inflows, according to dealers' words, there appeared funds from floatation of eurobonds of the largest in Kazakhstan Kazkommertsbank at the market. Volume of the issue, which was floated in April by two tranches, was $500 m. According to market's participants, on Thursday National Bank was almost absent in accordance with demand for dollars, which had appeared at the market. "Yesterday the National Bank supported dollar on a certain level. Today banks' demand, probably, was big enough, that's why the National Bank was present for some time only", - the treasurer of Alfa-bank Denis Ryltsev said. According to dealers' forecast, tendency of tenge's strengthening may be present the next week as well because of forthcoming tax and budget payments, and also inflow of funds on the next coupon payment on seven- year sovereign eurobonds of Kazakhstan, which were issued in 2000 for $350 m. "Tenge's strengthening will be promoted by currency proceeds inflows and the coupon, which is expected, most likely, on May, 12 under seven-year euronotes ", - Denis Ryltsev believes. "The next week the exported proceeds will come and we, most likely, will grow again. If the National Bank does not contain, we can go far downwards (on dollar). But again, most likely, the National Bank will make interventions at a stock exchange in order to contain the rate ", - the dealer of one of the Kazakhstan banks has assumed. [2003-05-08]