Deputy of the Majilis Mr. Aikyn Konurov proposed to oblige the National Bank of Kazakhstan to inform the public about the one-stage correction of the rate of the national currency, Zakon.kz  informs. 

“Despite the measures taken to improve confidence in the national currency, including changes in interest rates on deposits, the share of savings in Tenge remains to be unprecedentedly low. Thus, the total share of deposits in foreign currency exceeds 45%, and on deposits of individuals – 55%. The fact that the country’s people prefer to keep their savings in foreign currency is alarming. The current situation with a decrease in oil prices and the drop of Russian Ruble exchange rate puts additional pressure on Tenge. Despite official statements about the stability of the national currency, the concerns of the population and business are increasing. This is due primarily to the lack of a clear and transparent legal framework for exchange rate policy “, – Mr. Konurov said voicing the deputy’s inquiry addressed to the Prime Minister Karim Massimov and Head of the National Bank. 

The deputy noted that according to the current law “On the National Bank” the National Bank is the only body to define and implement the state monetary policy. 

“At that, the law actually provides for the only instrument – foreign exchange intervention. At the same time, the mechanism of their implementation is not regulated, nor the grounds for maintaining a particular exchange rate of Tenge. We remind that the National Bank as an authorized body must have a certain degree of flexibility in implementing its exchange rate policy in order to respond quickly to market changes,” – the deputy said. 

He also added that changes in the rate of the national currency entails serious social and economic consequences, affecting not only the activities of enterprises, but also the welfare of the population, its savings and pension savings. 

“A one-stage devaluation has a positive effect on separate branches of the economy, however, the rest of the industry and the population should not become hostages to their interests. Therefore, we believe that this issue must find its legal regulation. We ask to prepare amendments and additions to the Law on the National Bank, on pension provisioning, on banks and banking activities, on state accumulative system, which would provide for the following: regulation of the grounds for a one-stage change of the rate of the national currency, establishment of a maximum allowable threshold for carrying out a one-stage correction of the national currency and the procedure for informing the public and market participants” – Konurov summarized. 

The deputy also believes that it is necessary to determine the measures to compensate for losses resulting from the one-stage depreciation of the national currency on long-term bank deposits in national currency, pension savings and education, savings deposits. 

“The legislative resolution of these issues will allow to protect the rights of citizens and entrepreneurs, to increase confidence in the national currency, pension and banking system, to ensure predictable monetary policy of the Government” – Konurov concluded.