Kazakhstan's government and central bank have introduced a free float for the tenge
- Effective today
Like many EM currencies, the tenge has been under selling pressure, exacerbated by the still falling price of oil.. When a central bank defends its currency (for example, to buy tenge) its gotta come up with the other currency to shell out for it (for example, USDs).
So the question becomes, how much foreign reserves are ya gonna spend?
The National Bank of Kazakhstan has decided today that's enough, let the market decide on the rate, and the speculators can take each others' money, not the people's.
How much can a Kazakhstan bear?
