Unacceptable to use foreign currencies for settlements - Daniyar Akishev

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ASTANA. KAZINFORM Use of foreign currencies in Kazakhstan as a store of value or means of payment is unacceptable according to the legislation, Kazinform refers to the press service of the National Bank.

"Use of foreign currency inside the country as a store of value or means of settlement is unacceptable under the laws of the Republic of Kazakhstan. Only national currency must be in circulation across the country," said the chairman of the National Bank Daniyar Akishev.

According to him, Kazakhstan is not a source of foreign currency as not a lot of people in Kazakhstan have income in foreign currency.

"Our nearest neighbors, Kyrgyzstan, Uzbekistan, and Tajikistan have such a situation. The population of these countries is a source of foreign currency revenue, since the population primarily works in neighboring countries, and brings foreign currency in the form of revenues from its labor activities on a fairly large scale," Daniyar Akishev said.

The situation in Kazakhstan is different, as immigration and labor processes are more concentrated within the country and the existing migration does not have a significant impact on foreign exchange flows. Kazakhstanis' earnings are in tenge, but they also buy foreign currency for various purposes, such as savings, education, payment for imports, travel, etc.

In this regard, Kazakhstan's population is a net buyer of foreign currency, however, the situation has changed dramatically, since last year people were actively selling foreign currency, which they bought in significant volumes in 2014 and 2015. At the same time, Mr. Akishev stressed that people can buy foreign currency any time and in any volumes.

"I would not advise our people to buy up foreign currencies for future use, especially if the rate is not very favorable," he said.

The head of NBK believes that people are free to choose their own strategies, however, it is important to realize that is not recommended to buy foreign currency when fluctuations in the market become significant, as the population will lose. At the same time, according to Daniyar Akishev, people buying foreign currencies is a normal process as there are objective financial flows that require servicing in foreign currency.

 

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