Monday, January 26, 2009

I'm just trying to go about my business, forgetting about the past and thinking of a non-cycling, non-company future...

And yet even online I'm haunted...


I just wanna read about Kazakhstan and need to know if there will be a fall in the tenge...

From The Economist Online: Kazakhstan may be poised to cut the value of its currency

The Kazakh president has reappointed the veteran Grigori Marchenko as head of the central bank, stoking speculation that the country is poised to devalue its currency. In contrast to neighbouring states, Kazakhstan has kept its exchange rate versus the dollar stable in recent months, despite the enormous fall in the price of oil and metals, its main exports. Devaluation would be undertaken primarily to conserve foreign-exchange reserves rather than to give some relief to exporters and domestic producers. The risk, however, is that a small devaluation will open the door to speculative attacks, resulting in an exchange rate that would threaten the country’s banks—which are to repay an estimated US$14bn in foreign loans this year—with ruin. Mr Marchenko’s appointment seems intended to minimise this risk.

Nursultan Nazarbayev, Kazakhstan’s president, announced the appointment of Mr Marchenko as head of the National Bank of Kazakhstan (NBK) in a terse statement released on January 21st. The move, coming a day after the economy ministry conceded that the tenge could be allowed to weaken by nearly 10% against the dollar this year, has stoked speculation that Kazakhstan is poised to devalue its currency. Mr Marchenko first became head of the NBK in late 1999, shortly after a devaluation taken in the wake of the Russian financial crisis. He stayed in post for almost six years, during which time he received numerous plaudits for reforms to modernise the banking system. Mr Marchenko, in short, is experienced and highly-regarded. If the authorities were contemplating a shift in the exchange-rate policy, but were concerned to see that the situation did not spin out of control, it is highly likely that they would want a central bank head with a strong reputation such as Mr Marchenko. Prior to his return to the NBK he was the chief executive of Halyk, one of the country’s leading banks...

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