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Kazakhstan Follows Russia in Floating the Currency

  • Russia Insider's Alexander Mercouris has argued the single most important factor that has allowed Russia to weather lower oil prices so well has been its decision to float the ruble
  • Kazakhstan chose a different strategy and continued to maintain a partial peg to the dollar - and as a result has found itself in considerable difficulty
  • Now, however, Astana has declared it will move toward a freely-floating currency as Russia did last year
MORE: Business

ASTANA./TASS/. Kazakhstan will allow its national currency tenge to float freely, Prime Minister Karim Masimv said at a government telephone conference on Thursday.

"The decision was made to start a new economic policy from August 20 on the basis of inflation targeting and to cancel the currency corridor," the premier cited a joint statement of the government and the National Bank.

"A new economic policy in conditions of fundamental negative changes in the global economy necessitates a new monetary policy to ensure a balance between economic growth and stability of prices," he said.

"With this in view, the government and the National Bank of the Republic of Kazakhstan have made the decision to start the implementation of a new monetary policy, based on the inflation targeting regime and move to a floating exchange rate," the prime minister said.

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