Kazakh devaluation sparks social action

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http://atimes.com/atimes/Central_Asia/CEN-01-260214.html



Kazakh devaluation sparks social action
By Dauren Altynov
Feb 26, '14

Analysts say that recent protests over Kazakhstan's surprise devaluation of its currency signal a fresh interest in social action among younger people.

The demonstrations which followed the devaluation announcement on February 11 were small and were quickly dealt with by the authorities. Much of the anger was focused on President Nursultan Nazarbaev personally.

The devaluation shifted the exchange rate, previously pegged at 145 to 155 tenge to the US dollar, to 185 tenge to the dollar. This represents a loss in value of about one-fifth.

According to Kairat Kelimbetov, the head of the National Bank, it was no longer possible to prop up the tenge's value by depleting the country's gold and currency reserves as the Russian rouble, a key trading currency for Kazakhstan, weakened. Russia has been managing its own depreciation in a gradual manner since October 2013.