This year marks the 30th anniversary of the tenge, a symbol of our independence. Over this time, the national currency has undergone changes in both appearance and value fluctuations. El.kz sought the opinions of experts on measures that could help stabilize the tenge.
Economist Baurzhan Yskakov emphasized the development of domestic goods producers as a crucial condition for ensuring the tenge’s stability, highlighting key factors affecting the national currency.
«The current value of the tenge against the dollar depends on many factors. It’s not fair to blame the National Bank unequivocally. I believe it’s related to poor performance in complex work. A key aspect is tenge liquidity. Low demand or a small share of the tenge in our gross domestic product indicates that the revenues entering the economy and the budget are mostly in dollars, not in tenge. Approximately 65-70% of our budget’s revenues come from export payments,» the economist stressed.
«We only sell products for dollars. The dollar is the main currency of our export payments. But in the national interest, the value of the tenge should be high,» the expert believes.
The National Bank primarily influences price policy. To do this, the financial regulator should closely coordinate with the government. It’s the result of complex work. It’s important to maintain the value of our national tenge. Ordinary people use the national currency. It’s with this money that they buy housing, cars, and food. If we monitor the production of essential goods in Kazakhstan, it will directly impact people’s budgets. By using domestic goods, we keep the tenge within the country instead of it going abroad,» added Baurzhan Yskakov.
The economist also commented on the influence of unions, particularly the EEU, which, in his opinion, leads to inflation.
«Inflation in Russia negatively affects our country. We consume many Russian goods, which leads to inflation. The more we develop domestic production, the more stable our tenge will be. I am satisfied with the design of our national currency. The banknotes could feature images of national figures from ‘Alash’. Nevertheless, the current designs are also good, including from a security standpoint”.
What Measures Should the Authorities Take?
According to financier Rasul Rysmambetov, having a national currency is a sign of a state’s commitment to its own monetary and credit policy, a step that carries complexity and responsibility. Many countries in the world declare their decision to abandon national currency for various reasons.
«There are a number of absolute advantages to having your own currency. The first is the independence of monetary and credit policy. This is important for regulating the money supply, managing interest rates, and controlling inflation. The government can take such actions as changing interest rates or issuing additional money to achieve its macroeconomic goals,» says the financier.
The expert notes that with the proper conduct of monetary policy, the government can ensure stability and predictability in the economy. This plays an important role in attracting investment and maintaining confidence in the financial system.
Having its own currency gives a country more control over foreign trade. This helps to use monetary and credit policy to support exports or manage the current account. A national currency also protects the domestic market from fluctuations in exchange rates. When the government uses foreign currency, it is exposed to the risk of exchange rate fluctuations, which affect its macroeconomic stability. This is also important for maintaining budget discipline.
The financier also noted that using the national currency allows the state to avoid dependence on the monetary policies of other countries and international institutions, which can be a significant aspect of national sovereignty.
Translated articles may not reflect the editorial position and are published with the aim of increasing the awareness of our readers.
