In this article, We learn about "The Kazakhstani Tenge (KZT)".Let's Go!
The Kazakhstani Tenge (KZT) is the official currency of the Central Asian country of Kazakhstan.
After the country's independence from the Soviet Union in 1991, the Tenge was introduced on November 15, 1993, replacing the Soviet ruble.
The National Bank of Kazakhstan is responsible for issuing and managing the Kazakh Tenge.
Exchange rate system
The Kazakh Tenge operates a floating exchange rate system, and its value relative to other currencies is determined by market forces such as supply and demand.
The National Bank of Kazakhstan may intervene in the foreign exchange market when necessary to maintain stability or prevent excessive volatility.
This system allows the Kazakh Tenge to respond to external shocks and changes in global market conditions while maintaining a certain degree of stability.
Segments and denominations
The
Kazakhstani Tenge was subdivided into 100 smaller units called tiyn, although tiyn coins are no longer in circulation.
Coins are issued in denominations of 1, 2, 5, 10, 20, 50, 100 and 200 tenge.
Banknotes are available in denominations of 200, 500, 1,000, 2,000, 5,000, 10,000 and 20,000 tenge.
Economy and Challenges
Kazakhstan’s economy is largely based on natural resources such as oil, gas and minerals, which account for a large portion of the country’s exports.
Other key sectors include agriculture, manufacturing and services.
However, Kazakhstan faces multiple economic challenges, including overreliance on natural resources, high levels of corruption, and income inequality.
The government has been formulating policies to diversify the economy, improve infrastructure and attract foreign investment.
Summary
To summarize, the Kazakh Tenge is the official currency of Kazakhstan and is managed by the National Bank of Kazakhstan.
The currency operates on a floating exchange rate system, with its value determined by market forces and potential central bank intervention.
The Kazakh Tenge is subdivided into tiyn and issued in various banknotes and coins.
Kazakhstan’s economy relies mainly on natural resources, but the country faces challenges such as over-reliance on natural resources, corruption, and income inequality.
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