IFPRI CENTRAL ASIA NEWS WEEKLY DIGEST (AUGUST 18 – AUGUST 24, 2015)

News and Analysis

Kazakhstan Tenge Slides 23% as Emerging-Market Rout Strains Pegs

(Bloomberg, 19 Aug 2015) Kazakhstan relinquished control of its exchange rate amid economic woes and chose to stop defending their currencies after China roiled global markets by devaluing the yuan, suggest the article. The move triggered 23% slide in the local currency Tenge to a record 257.21 per dollar. Referring to SEB AB in Stockholm, the article suggests that Kyrgyz Som, Turkmen Manat and the Tajik Somoni were next in line.

ADB $1 Billion Loan to Help Kazakhstan Counter Economic Slowdown

(ADB, 21 Aug 2015) The Asian Development Bank (ADB) has approved a $1 billion loan to help Kazakhstan continue government programs to strengthen the economy in the face of recent challenges, informs the bank. The loan will support efforts to stabilize the economy following the recent move by the government and the National Bank to adopt a free floating exchange rate together with inflation targeting.

National Bank has acknowledged the impact of Tenge devaluation on the currency market of Tajikistan

(Asia-Plus, 24 Aug 2015) National Bank of Tajikistan explained that national currency Somoni is suffering from effects of devaluation of Kazakh Tenge and Russian Ruble. As a result, difference between national official exchange rate, exchange rate at exchange offices and black market is widening. National Bank officials also informed that the situation on the currency market is under control and acknowledged about a loan deal with Chinese Development Bank to alleviate devaluation effects and “to reduce dependence of Tajikistan on the US dollar”.

Uzbekistan to introduce new import duties for some goods from 1 Sep

(UzDaily, 24 Aug 2015) Uzbekistan sets new rates of import duties and excise tax for some consumer goods effective from 1 September 2015, according to new resolution “On further measures on ordering foreign trade activities in Uzbekistan”. The resolution was adopted to create favorable conditions for sustainable development of local producers of ready products, competitive in internal and external markets, suggests the article. List of food products including dairy and meat products will have revised import tariffs.

Publication

Knowledge-based Economic Growth in Kazakhstan

(S. Yususf. 2015. Global Journal of Emerging Market Economies. Vol. 7(3).)

Abstract Excerpts: Mineral resource rich countries are under pressure to diversify their sources of growth and employment in the face uncertain demand and fluctuating prices for their products…it is only by building capabilities in other areas that economies such as Kazakhstan can gainfully absorb an expanding and better-educated workforce. Given the small size of its domestic market, its remoteness, and its relatively high wage rates, Kazakhstan cannot compete with Asian countries in the production of standardized manufactures. Hence as this article discusses, Kazakhstan must acquire and enhance technological capabilities in niche manufacturing, agro-industries, and certain high value tradable services. And, it needs to exploit the ongoing regional investment in transport and logistics to tap opportunities across Central Asia and in Europe…