Tag Archives: Kazakhstan

Businesses and consumers worry after Kazakh tenge devaluation

FEB. 15 2014 (The Conway Bulletin) — The sudden 20% devaluation of the Kazakh tenge on Feb. 11 generated anger and despair across Kazakhstan.

Police detained roughly 50 protesters in rare antigovernment demonstrations in Astana and Almaty and rumours of an imminent collapse triggered a run on several high street banks.

In central Almaty the manager of a store selling underwear could barely constrain herself. She had no customers and was angry.

“This devaluation is terrible and we don’t want it. In our store, prices will not increase, but the cost of living will surely soar,” she said.

At a clothing store in a busy shopping mall, Gaukhar shared this view.

“This could turn into a nightmare,” said the shop assistant. “While prices will undoubtedly increase, we haven’t heard a word from our directors to raise our wages.”

One of the big fears for Kazakhstan’s policy makers is that rather than making the economy more competitive, the devaluation will simply stoke inflation. Some large industries, including the steel plant owned by the Luxembourg-based ArcelorMittal has already said it will increase its workers’ salaries by 10%.

There were mixed signals in Almaty. Many shopkeepers said that they hadn’t yet put up their prices but that they soon would.

“There’s already been a significant change in prices of between 500 and 1,000 (tenge) per pair of shoes,” said Assel as she tendered to her shop in Almaty’s Green Bazaar. “We’ve seen a lower turnout of customers this past week. They come in, try on the shoes but then go out empty-handed.”

Assel’s shoes were imported mainly from China and an increase of 500 to 1,000 tenge per pair represented a rise of roughly 20%.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 172, published on Feb. 19 2014)

Kazakh wins bronze medal at Winter Olympics

FEB. 14 2014 (The Conway Bulletin) — Figure-skater Denis Ten won Kazakhstan’s first medal of the 2014 Sochi Olympics. Mr Ten, 20 came third in the men’s short programme figure-skating. The medal is important to Kazakhstan which wants to host the 2022 Winter Olympics.

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(News report from Issue No. 172, published on Feb. 19 2014)

Inflation rises in Kazakhstan

FEB. 15 2014 (The Conway Bulletin) — In the week since the Kazakh Central Bank decided to de-value the tenge by 20%, prices in shops have risen, stoking fears of inflation. A Conway Bulletin correspondent in Almaty interviewed shoppers and stores owners for their feelings on the devaluation.

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(News report from Issue No. 172, published on Feb. 19 2014)

Kazakh PM wants to boost food processing

FEB. 7 2014 (The Conway Bulletin) — Kazakh PM Serik Akhmetov ordered his government to produce a plan to boost the county’s food processing industry, Kazakh media reported. Mr Akhmetov said that although Kazakhstan produces plenty of food, most of its processed food is imported.

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(News report from Issue No. 171, published on Feb. 12 2014)

Kazakhstan devalues the tenge

FEB. 11 2014 (The Conway Bulletin) — Kazakhstan’s Central Bank devalued the tenge by 20% despite months of denial that it was contemplating a move. Pressure has been mounting on the tenge and other currencies in emerging markets because of a strengthening US dollar.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 171, published on Feb. 12 2014)

The Kazakh Central Bank devalues the tenge

FEB. 11 2014 (The Conway Bulletin) — On what has been dubbed “Black Tuesday”, Kazakhstan’s Central Bank devalued the tenge by 20%.

The sudden move was designed to relieve pressure on the currency, despite Central Bank chief Kairat Kelimbetov saying for months that a devaluation was not on the cards. Last month he even urged Kazakhs to save more in tenge.

With the United States preparing to increase interest rates, the dollar has been strengthening and currencies in emerging markets have been under increased pressure. It had only been a matter of time before the Kazakh tenge flinched but the sudden drop will still have major consequences.

Mr Kelimbetov’s credibility has been badly damaged. He’s only been in the job since October so he’s still a relative novice. Longer term, the depreciation shows the tenge as weak and unstable.

Most of Kazakhstan’s imports are designated in dollars and so inflation is expected to rise fast; the depreciation of the tenge has also wiped out millions of dollars of ordinary Kazakhs’ savings.

This is the second sharp tenge devaluation in five years and there is a real chance that ordinary Kazakhs won’t trust the currency again.

In Almaty, some ATM machines stopped working for a couple of hours after the announcement and shops closed for the day. The public was worried.

Ainur, an Economics undergraduate said she was “concerned about a possible hike of her tuition fees. Gulmira, the administrator of a busy grocery shop, said prices had not yet increased but would soon. Near to her shop, electronics stores had taken down their price tags. Their websites were also closed for business.

On twitter, there has been talk of demonstrations against the devaluation. Feelings are running high.

ENDS
Copyright ©The Conway Bulletin — all rights reserved

(News report from Issue No. 171, published on Feb. 12 2014)

Kazakhstan may change name

FEB. 11 2014 (The Conway Bulletin) — Kazakhstan may be set for a rebrand after President Nursultan Nazarbayev said he thought it was time for a name change.

Mr Nazarbayev told a group of businessmen that he thought dropping the -stan suffix would be a good idea because of the stigma attached to the so-called Stans.

To make his point, Mr Nazarbayev cited the example of Mongolia which he said was thriving because it wasn’t a Stan.

There may also be a hint of snobbery in the proposal. Perhaps Mr Nazarbayev simply feels that Kazakhstan is too big and too important to be lumped together with the other four Central Asian Stans, Pakistan and Afghanistan.

In any case, Mr Nazarbayev suggested Kazakh Yeli as an alternative to Kazakhstan. Kazakh Yeli means Nation of the Kazakhs.

Calling Kazakhstan, Kazakh Yeli would, however, be slightly more than just cosmetic. Stan comes from Persian and means land or territory. Kazakhstan, therefore, means Land of the Kazakhs and not Nation of the Kazakhs.

(News report from Issue No. 171, published on Feb. 12 2014)

Activists accuse Kazakh authorities

FEB. 11 2014 (The Conway Bulletin) — Media groups accused the Kazakh authorities of bias after Police arrested four bloggers who had protested against perceived favouritism shown by Almaty mayor’s Akhmetzhan Yessimov. Three of the bloggers were arrested protesting outside a restaurant where Mr Yessimov was dining with favoured bloggers and another was arrested six days later.

(News report from Issue No. 171, published on Feb. 12 2014)

Kazkommertsbank and BTA sign deal in Kazakhstan

FEB. 6 2014 (The Conway Bulletin) — Kazkommertsbank, Kazakhstan’s largest bank, and Kenes Rakishev, the son-in-law of the mayor of Astana, finalised a $1b deal to buy most of BTA Bank from the Kazakh government. The merger will happen by the end of the year, said Kaskommertsbank. The Kazakh government bought debt ridden BTA Bank in 2009.

(News report from Issue No. 171, published on Feb. 12 2014)

Construction workers go on strike in Kazakhstan

FEB. 11 2014 (The Conway Bulletin) — Around 700 workers building the 88-storey Abu Dhabi Plaza in Astana went on strike after complaining about their pay, media reported. The Abu Dhabi Tower project was unveiled last year to much fanfare. UAE investors are funding the $1.6b tower which was expected to be finished by 2016.

(News report from Issue No. 171, published on Feb. 12 2014)