Tenge continues to strengthen due to currency inflow from exporters and banks

/REUTERS, Almaty, May 30, 03/ - Inflow of currency proceeds of Kazakhstan exporters, which still exceeds domestic investors' demand, and also inflow of funds from syndicated loans of a number of Kazakhstan banks caused further strengthening of tenge relative to US dollar this week, traders say. "Tendency of tenge's growth relative to US dollar, as it seems to me, has been determined and there is no reasons for its breaking", - said a treasurer of Alfa- Bank Denis Ryltsev. On Friday weighted average rate of Kazakhstan tenge at Kazakhstan stock exchange's morning session rose to 150.41 for $1 from KZT150.59 on Thursday and 150.50 on last Friday. Volume of trade rose to $15.080 m. from $3.565 m. at previous session. During the week there were insignificant fluctuations of quotations, which market's participants call technical correction of the rate. Thus, on Thursday weighted average rate of dollar strengthened a bit on the level of KZT150.59 after its decreasing to KZT150.43 for $1 on Wednesday from KZT150.47 on Tuesday. "Actually the market is now more or less balanced. We do not believe in a rabid interest in purchasing or selling dollars", - said one of dealers of bank TuranAlem. According to some participants' words, some demand for dollars is preserved at the market, what is said about by significant sales volumes last week. However this demand is also neutralized by funds, which come from eurobonds floatation and borrowing of syndicated loans by a number of Kazakhstan banks, among which Halyk Bank of Kazakhstan, Bank TuranAlem and Temirbank. Last week bank TuranAlem declared about floatation of eurobonds for $225 m., and on Thursday Temirbank informed about borrowing of syndicated loan for $20 m. According to the words of market's participants, some decrease of trust in US dollar, which is observed in latest time, also impacts the growth of the rate of Kazakhstan national currency. "The so called devaluation pressure is absent now, so free resources, even if they are present, remain in tenge now... Trust in dollar has fallen, and it's not bought now", - said a dealer of one of Kazakhstan banks. Analysts of stock exchange's agency of financial news "Irbis" also keep to this opinion, they think as trust in US dollar fell Kazakhstan investors started searching for alternative currencies and reduction of dollar positions. The forthcoming summer period, according to dealers' words, in its turn will bring "the season" factor, which will cause some decrease of business activity during the vacation period, that let expect some stabilization of the currency market. "Traditionally summer months - June-July - are rather calm. And in August, as grain campaign begins, it happens differently", - said Ryltsev from Alfa-bank. [2003-05-30]