The government of Kazakhstan announced the transition to a freely floating exchange rate of tenge

Almaty. August 20. Silkroadnews -  Prime Minister Karim Massimov announced the transition to a new economic policy and the free floating exchange rate of tenge from 20 August 2015, reported KazTAG.
"The National Bank and the Government of the Republic of Kazakhstan made a decision to proceed from August 20, 2015 a new monetary policy based on inflation targeting regime, to cancel the trading band and go to a free floating exchange rate of tenge", - said K. Massimov at the selector government meeting of Kazakhstan on Thursday.
According to him, since now the tenge exchange rate will be based on market supply and demand, taking into account the internal and external macroeconomic factors.
"The National Bank will not intervene in the formation of the market level of the exchange rate of tenge, but reserves the right to participate in the domestic foreign exchange market through foreign exchange intervention in the event of a threat of destabilization of the financial system of the country", - said Karim Massimov.
He also said the transition to a new economic policy aimed first and foremost at preserving the social and economic stability in order to prevent the decline in production, reduction of investment and lending activity, increasing unemployment and reducing the welfare of the population.