Artificial suppression of inflation through strengthening of tenge rate is incorrect step - expert
Almaty. December 3. KazTAG - Artificial suppression of inflation through strengthening of tenge rate is incorrect, believes Aidarkhan Kusainov, financial analyst.
"Tenge should weaken because ruble is falling down, because oil price has been falling," said Kusainov.
In his opinion the devaluation held in February failed to achieve the aims sounded by the management of the National Bank, "but delivered inflation in the country".
"There was fall of import in 2009 following devaluation, it showed that that time Kazakhstani people could abandon something and it didn't cause any inflation rise. The devaluation of this year did not affect the volumes of import, we kept on buying the same goods, but 20% more expensive," he said.
Meanwhile, in his opinion artificial inflation suppression through tenge strengthening is incorrect.
"Keeping the inflation within 8.5% is a political task. But doing thing through tenge strengthening the National Bank is growing tension, this policy is incorrect. We should weaken tenge, devaluate, but not in a shocking way, but in balance," he resumed.