Tag Archives: currency

Kazakh banknote wins international award

MAY 17 2013 (The Conway Bulletin) — In terms of banknote sophistication — artwork and anti-forgery security — Kazakhstan is world class.

The International Bank Note Society named Kazakhstan’s 5,000 tenge note, worth around $33, as the best new issue of 2012.

This is the second consecutive year that Kazakhstan has won the award after its new 10,000 tenge note won in 2012.

With the help of the British banknote printer De La Rue, the Kazakh Central Bank designed and launched the new 5,000 tenge banknote on New Year’s Eve 2011/12.

The judges praised its bright orange colour as well as the banknote’s designs, including an outline of the country, the iconic Soviet-built Hotel Kazakhstan in Almaty and Independence Statue in the centre of the city.

The note also contains various anti-forgery watermarks and other devices that improve its security.

Unusually for banknotes, the 5,000 tenge note, which beat Canada’s 50 dollar bill and the Jersey 100 pound bill for the award, does not carry the image of a famous national person.

If banknote art and sophistication is a sign of a confident, growing economy that is increasingly proud of its currency and aware of its national symbols, then Kazakhstan is definitely moving in the right direction.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 135, published on May 20 2013)

Cash ban complicates ordinary life in Uzbekistan

FEB. 8 2013 (The Conway Bulletin) – On Feb. 1, Uzbekistan banned buying foreign currencies with cash. Officially, the ban was imposed to stamp out Uzbekistan’s burgeoning black market. Unofficially it appears to be another form of control over ordinary people.

A black market for US dollars in Uzbekistan has been vibrant for years because of heavy currency controls imposed by the government. These controls made it far cheaper to buy US dollars under the counter at the back of a carpet shop than it did in a bank.

But reports from Tashkent already suggest that strategy of banning currency transactions in cash to quash the black market, if this was the real aim, may have backfired. Despite the crackdown US dollars are still being traded. According to Eurasianet, the effect of the currency restrictions was to limit supply of US dollars and push prices up by roughly 40%.

The restrictions on US dollars may also effect wider sales. US dollars are often used in Uzbekistan to buy cars or houses as using sum, the local currency, in a large cash purchase is practically impossible because of the piles of notes needed.

Uzbek officials will point out that if you have a bank account you can, electronically, still buy US dollars. The worth of this, in a cash based economy, is, though, highly questionable.

ENDS

(News report from Issue No. 123, published on Feb. 8 2013)

Uzbekistan restricts dollars

JAN. 30 2013 (The Conway Bulletin) – Uzbekistan’s Central Bank has banned the cash exchange of foreign currencies, mainly US dollars, from Feb. 1, Radio Free Europe/Radio Liberty reported. The Central Bank said it needed to ban the exchange of dollars to clamp down on Uzbekistan’s burgeoning black market. Dollars can still be bought electronically.

ENDS

(News report from Issue No. 122, published on Feb. 1 2013)

Kazakh Central Bank scraps tenge corridor

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FEB. 28 2011 (The Conway Bulletin) – The Kazakh Central Bank scrapped a two-year valuation corridor for the tenge in favour of a managed float. Kazakhstan introduced a 145-155 tenge/$1 corridor in Feb. 2009 after it devalued the tenge by 18% during the global financial crisis. Rising oil, grain and metals prices have pushed up the value of the tenge.

ENDS

(News report from Issue No. 29, published on Feb. 28 2011)

S&P upgrades Kazakhstan’s rating

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DEC. 23 2010 (The Conway Bulletin) – Credit ratings agency Standard & Poor’s raised its sovereign foreign currency rating on Kazakhstan to BBB from BBB-. It said the upgrade reflected Kazakhstan’s rebound from the global recession. Ratings service Moody’s has already upgraded Kazakhstan to Baa2. Fitch retains a BBB-rating.

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(News report from Issue No. 21, published on Jan. 4 2011)

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Azerbaijani C.Bank says to keep currency peg

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SEPT. 16 2010 (The Conway Bulletin) — Azerbaijan will keep its manat currency pegged to the US dollar and the euro while its economy improves, the head of the Central Bank, Elman Rustamov, told Bloomberg. Azerbaijan pegged the manat’s exchange rate in March 2009 during a downturn in the global economy.

ENDS

(News report from Issue No. 8, published on Sept. 23 2010)

Azerbaijan’s economy rebounds

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SEPT. 23 2010 (The Conway Bulletin) — Azerbaijan’s economy is reliant on oil and gas. It has rebounded this year after a heavy slump in the world economy and oil prices combined in 2009 to knock growth.

In August, the ratings agency Moody’s upgraded the Azeri banking sector to stable from negative, reflecting Azerbaijan’s improving economy. Moody’s said the Azeri economy remained vulnerable to external shocks but “the banks are also benefiting from relatively stable macroeconomic conditions”.

In an interview with Bloomberg, the head of Azerbaijan’s Central Bank, Elman Rustamov, echoed this sentiment. He said Azerbaijan’s economy would grow by 4-5% this year compared to a 14% fall in 2009 but that he wanted to keep Azerbaijan’s currency, the manat, pegged at 0.803 to the US dollar for the rest of the year.

Mr Rustamov said the manat peg was important to stop the currency strengthening too quickly and damaging the non-oil sector’s recovery.

The manat has gained 12.5% against the dollar since redenomination in January 2006.

Oil makes up 93% of Azerbaijan’s exports and the average price per barrel has been 37% higher this year compared to 2009, Mr Rustamov said. Oil production will remain at around 50m tonnes this year, roughly the same as 2009. In 2008, Azeri oil production was 44.5m tonnes.

Mr Rustamov said that inflation would rise to about 10% this year.

ENDS

(News report from Issue No. 8, published on Sept. 23 2010)