Dollar in Kazakhstan has reached 27-month minimum, bottom is not seen yet - dealers

/REUTERS, Almaty, Oljas Auezov, August 15, 03/ - Rate of Kazakhstan tenge relative to US dollar grew again in the passing week and on Friday, in presence of traditional for this week high volume of trades, reached KZT146.00 for dollar, which was maximal level since May of 2001. Dealers expect further decreasing of dollar the next week. "Standard situation: big inflow of (exported) proceeds, clients sell currency, the rate is falling, National Bank keeps it", - said a dealer of Alfa-Bank Denis Ryltsev. "(The rate determines) the same - export plus foreign borrowings", - Timur Gabasov from Citibank agreed with him. The rate of tenge relative to dollar has been stably strengthening since the beginning of 2003 due to high prices for oil and metals - major export goods of Kazakhstan, and also active foreign borrowings of largest banks and companies. In dealers' opinion, both factors will remain in effect in the future. "I can't see breaking of the tendency yet. Tenge will be strengthening", - Ryltsev from Alfa-bank thinks. This week bank TuranAlem, which is the second largest one in Kazakhstan, informed that it had agreed about the syndicated loan for $245 m. In September medium by the size ATFBank plans to issue debut eurobonds for $100-150 m. "In all probability, this trend (weakening of dollar) will last till the end of the year ", - said Gabasov from Citibank. "As regards the short-term outlook, dollar seems to be over-sold, some correction is possible, but as a whole there is the only direction - downwards", - he added. [2003-08-15]