Kazakh tenge slides

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The Kazakh tenge experienced a default on August 20. It decreased by more than a third and totals 255 tenge for 1 dollar now. It happened on the first day after the implementation of the free exchange rate (according to the new money and credit policy rules), BBC reports.

The dollar cost only 188 tenge yesterday. It means that the dollar exchange rate has gone up by 67 tenge or 35% on one day.

The default of the national Kazakh currency can be explained by the decrease in the oil prices. The country’s economy is dependent on oil export. The weakening of the Russian rouble is also to blame to for the default.

Kazakhs are buying out foreign currency now. There will be no rapid increase in the prices for essential commodities, the authorities have promised.

Photo: Fotolia