The value of the Kazakh currency, the tenge, has dipped over the past two weeks, shaking the confidence of citizens during the holiday season. Russia, Kazakhstan’s leading source of imports, appears to be a major cause of the exchange-rate woes.
The tenge hit 522 to the US dollar on December 4. Over the past week, it recovered slightly only to take another dip and was trading at 521 to $1 USD on December 11. The decline of the tenge’s value by up to 10 percent in just 10 days set social media in Kazakhstan ablaze.
“Soon our currency will turn into candy,” one poster worried.
The currency’s loss of value is already exerting inflationary pressure on food items and consumer goods, much of which Kazakhstan imports from Russia. Shops in Almaty and elsewhere have increased prices.
Officials’ credibility has taken a hit in the eyes of many citizens. As recently as October, top government officials, such as Vice Minister of National Economy, Arman Kasenov, were touting the strength of the tenge, citing an improving balance of trade.
“Exports this year are much higher than last year. Imports have fallen. We have a healthier trade balance today. Therefore, at the moment we have no grounds for devaluation,” Kasenov testified during a Kazakh senate hearing.