Devaluation impossible under inflation targeting and free-float regime - Kazakh National BankA sharp devaluation of Tenge is impossible with the inflation-targeting and free-floating exchange rate regime that is in effect in Kazakhstan, the National Bank Chairman Timur Suleimenov told a Thursday briefing."As far as possible devaluation is concerned, the kind of abrupt devaluation that has unfortunately become ingrained in public perception, where rates build up and then suddenly change overnight, cannot occur under an inflation-targeting regime with a free-floating exchange rate," Suleimenov said.He noted that Tenge exchange rate may fluctuate due to domestic and external factors."We’ve already seen how the exchange rate behaves -- it doesn’t normally change abruptly. It can strengthen or weaken depending on both internal and external factors. Of course, the key driver here is external conditions, primarily oil prices," he added.A steady decrease in oil prices would affect Kazakhstan’s export revenues, balance of payments and USD supply in the domestic currency market, according to the chief banker."If oil prices and other export commodities remain at acceptable levels while import prices decrease, the situation will naturally be more stable," Suleimenov said when asked about devaluation risks. (ICE ALMATY)

Fonte notizia: INTERFAX