Kazakh National Bank withdrew from circulation 290 bln tenge in Aug, plans to sterilize the same volume in SeptThe National Bank of Kazakhstan sold in August on the domestic market 290 billion tenge in foreign currency, the regulator’s press service said in a Tuesday press release.In September, the National Bank also plans to sterilize 290 billion tenge or the same amount as in August, according to the press release.The National Bank of Kazakhstan withdraws Tenge from circulation through a currency mirroring mechanism to addresses inflationary pressures created when the Bank purchases domestic gold production using tenge issuance. By selling equivalent foreign currency earned from gold exports, the Bank aims to neutralize excess liquidity.When managing National Fund assets, the National Bank adheres to the market neutrality principle, which involves regular and evenly distributed foreign currency sales, the press release says.The National Bank did not conduct currency interventions in August of this year.In January-May 2025, the National Bank sold 1.2 trillion tenge worth of proceeds from gold exports. The regulator aims to withdraw an additional 3.6 trillion tenge from circulation by year-end through the currency mirroring mechanism.In 2011, Kazakhstan introduced a regulatory requirement for domestic gold producers to sell refined gold to the National Bank, which then sells it on international markets. However, gold purchases from the gold producers are financed through tenge issuance, increasing money supply and contributing to inflation.To curb inflation and bring it closer to the 5% target, the National Bank had decided to sell USD on the domestic forex market in the amount equivalent to the Tenge issued for gold purchases.In the twelve months of this year the National Bank plans to sell around $5.5-6 billion. (ICE ALMATY)

Fonte notizia: INTERFAX