Tag Archives: central bank

Kyrgyzstan rates stay steady

APRIL 27 2015 (The Conway Bulletin) – Kyrgyzstan’s Central Bank held interest rates steady at 11% because of slowing inflation, media reported. Previously the Central Bank has aggressively raised interest rates to try and curb inflation generated by the falling value of the som.

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(News report from Issue No. 229, published on April 29 2015)

Kulibayev criticises Kazakh Central Bank

APRIL 3 2015 (The Conway Bulletin) – Timur Kulibayev, one of Kazakhstan’s richest men and son-in-law of President Nursultan Nazarbayev, criticised the Central Bank’s handling of the growing economic fallout, a rare show of dissent by a senior member of the Kazakh elite.

At a business forum in Almaty, Mr Kulibayev said he was “not satisfied with the work of the Central Bank”, specifically with regards to the lack of liquidity.

“How can entrepreneurs get access to liquidity?” he said. “How can lending become more affordable? When we travel to the regions, these are the questions we are asked.”

The fallout from a slide in the value of the Russian rouble and a drop in the price of oil has hurt economies in Central Asia and the South Caucasus, piling pressure on its leaders and businesses. Mr Kulibayev owns Halyk Bank, one of Kazakhstan’s biggest banks.

Once feted as a leader–-in-waiting, Mr Kulibayev has become increasingly out-spoken and isolated.

The National Chamber of Entrepreneurs (NCE), a powerful organisation which he heads, has repeatedly criticised the Central Bank’s support for the national currency despite devaluation pressure.

Last month, Umut Shayakhmetova, the CEO of Halyk Bank also said in an interview that the Central Bank was hurting the economy by not allowing the currency to free-float.
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(News report from Issue No. 226, published on April 8 2015)

Georgia says inflation to rise

APRIL 3 2015 (The Conway Bulletin) – Inflation in Georgia will hit 5% by end-2015, Central Bank chief Giorgi Kadagidze told Bloomberg. Mr Kadagidze said the devaluing lari was the main reason for the predicted inflation rise. Official statistics said annualised inflation measured 2.6% in March.
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(News report from Issue No. 226, published on April 8 2015)

Azerbaijan CBank sells US dollars

APRIL 1 2015 (The Conway Bulletin) – Azerbaijan’s Central Bank said it had spent more than $1b of its reserves defending the value of the manat currency since it devalued by a third in mid-February. The admission will be an embarrassment for the Central Bank as the devaluation was meant to relieve pressure on the manat and protect reserves.
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(News report from Issue No. 225, published on April 12015)

Kyrgyz Central Bank spends to defend som

MARCH 31 2015 (The Conway Bulletin) – Kyrgyzstan’s Central Bank bought $11.4m worth of som to slow its devaluation, media reported, its third intervention in March. Kyrgyzstan, like other countries in the region, has been trying to manage a fall in the value of its currency.
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(News report from Issue No. 225, published on April 12015)

Georgia CBank keeps interest rates steady

MARCH 26 2015 (The Conway Bulletin) – Georgia’s Central Bank kept its key interest rate at 4.5%, confounding expectations of another rate rise to counter a fall in the value of its lari currency. The Central Bank said the current inflation rate did not merit a rate rise although it also said that a gradual devaluation would probably push prices up.
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(News report from Issue No. 225, published on April 12015)

Azerbaijan’s SOCAR needs $1b to build plant

MARCH 19 2015 (The Conway Bulletin) – SOCAR, Azerbaijan’s state energy company, said it will ask the Central Bank for a 1b manat ($925m) loan to build an oil, gas and petrochemicals plant. This is important because last year SOCAR delayed construction of the $16.5b plant because its funds had dried up.
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(News report from Issue No. 224, published on March 25 2015)

Georgian Central Bank props up lari

MARCH 19 2015 (The Conway Bulletin) – The Georgian Central Bank is continuing to support the lari currency, buying $40m to prop it up. This was the fourth Central Bank intervention to defend the lari currency this year. Since November, the lari has lost 29% of its value, media reported.
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(News report from Issue No. 224, published on March 25 2015)

Kazakhs expect devaluation

MARCH 18 2015 (The Bulletin) – Ordinary Kazakhs have lost faith in the Central Bank and are expecting a tenge devaluation, media quoted Halyk Bank CEO, Umut Shayakhmetova as saying. She said the proportion of savings held in foreign currency had now risen to 70%. The Central Bank has promised not to devalue the tenge.
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(News report from Issue No. 223, published on March 18 2015)

Georgia CBank wants loans restructured

FEB. 25 2015 (The Conway Bulletin) – Georgia’s Central Bank wants commercial banks to present plans to restructure US dollar loans to help them cope with the drop in the value of the lari. An estimated 60% of banks’ loans are held in foreign currencies making them more expensive to service.
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(News report from Issue No. 221, published on March 4 2015)