Kazakhstan Sees 23% Increase in Gold and FX Reserves
Kazakhstan's gold and foreign exchange reserves surged to $44.2 billion by November 2024, reflecting a 23.1% increase, or $8.3 billion, from the previous year, according to the National Bank of Kazakhstan.
Gold assets make up 57.2% of the reserves, amounting to $25.3 billion. As of January 6, Kazakhstan holds 295.2 tons of gold, ranking 20th globally, between the United Kingdom and Lebanon.
The country's foreign currency assets are invested in safe, liquid instruments such as U.S. Treasuries and high-grade bonds. These reserves are strategically stored both domestically and with international custodians.
“The National Bank acquires gold from producers and persons who became its owners after processing. This supports the development of the domestic gold mining and processing industry, as well as contributes to the replenishment of gold and foreign exchange reserves,” said the National Bank of Kazakhstan, as quoted by Kazinform.
Gold serves as a hedge against economic and geopolitical risks, providing protection against fluctuations in foreign currency value. Despite the depreciation of the tenge by 15% in 2024, the National Bank is prepared to use its reserves to support the national currency. However, President Tokayev recently stated that using foreign exchange reserves for market interventions is not advisable.
“We moved away from the practice of artificially holding the exchange rate long ago. We operate under a regime of free-floating exchange rates determined by market factors. I believe it is unreasonable to deplete foreign exchange reserves just to sustain a strong tenge. Some market participants suggest transitioning to a more managed exchange rate. The National Bank and the government are carefully examining all options. After thorough analysis, it will become clear whether changes in the approach are necessary,” he said.
Photo credit: National Bank of Kazakhstan
