Volatility of tenge will not affect well-being of population - Nursultan Nazarbayev

In the course of the meeting the Head of State heard a report on the results of the work of the National Bank for the first half of this year.

The President of Kazakhstan noted nowadays the country has necessary conditions for maintaining stability in the monetary and financial market and further economic development.

"At present, we have opportunities to ensure the stability of the national currency and the economy. In the first half of the year, the economy grew by more than 4%. The transition to a floating exchange rate was correct. It is necessary to get used to the fact that there will be fluctuations, but within certain limits. This will not affect the welfare of the population", Nursultan Nazarbayev stressed.

The President of Kazakhstan separately focused on the measures taken to improve the banking sector.

"The state provided serious assistance to the banks. Three trillion tenge was allocated to support the banking system. We also revised the legislation on currency regulation and improving the activities of the National Bank. Therefore, now it is necessary to intensify the work of the banks in business loans, including small and medium-sized businesses", Nursultan Nazarbayev said.

The Head of State paid attention to the need for more careful regulation of the banking sector in order to protect the population's deposits from fraudulent actions of dishonest shareholders.

According to D. Akishev, in the financial market of the country the main indicators remain stable situation.

"Inflation in June 2018 was 5.9% in annual terms. This is the lowest figure for the last three years. The National Bank sets a goal to reduce inflation to the level of 4% by 2020", the Chairman of the National Bank stated.

D. Akishev informed the President of Kazakhstan about the main factors influencing the change in the national currency rate.

"The main factor that influences the change in the tenge's exchange rate is the situation on the currency and financial markets of Kazakhstan's trade and economic partners. The second factor is the strengthening of the dollar in the world in relation to other currencies. It should be noted that enterprises and the population have adapted to such fluctuations. In general, there is a decrease in demand for foreign currency in the country", the Chairman of the National Bank said.

At the end of the meeting, the Head of State gave a number of specific instructions.