Kazakhstan's tenge strengthens 12.2% against US dollar since start of year

Since the start of the year, Kazakhstan's tenge has strengthened against the US dollar by more than 12%, according to 24KZ. The outlet reports this is the best result among commodity economies worldwide. According to the official National Bank rate, the dollar fell from 502 tenge 57 tiyn to almost 448 tenge. The Brazilian real and Norwegian krone followed in strengthening, with the Australian dollar up 4.5% and the South African rand up 1%. The Canadian dollar, Russian ruble and Mexican peso showed negative movement.

Analysts link the tenge's strengthening to an improved balance of payments. According to the National Bank, the current account posted a surplus of $2.4 billion in the first half of the year, compared with a deficit of $3.6 billion a year earlier. Goods exports rose by more than a quarter to $48.5 billion, while imports grew almost 6% to $32 billion. High oil prices and the yield on tenge-denominated assets also support the currency. According to the Association of Financiers of Kazakhstan, non-resident investments in government securities have risen almost 38% since the start of the year.