The main factor in the strengthening of the real effective exchange rate index of the soum in the first month of 2022 was the devaluation of exchange rates of trading partner countries. The soum strengthened by 0.8%.
In the first month of 2022, the effective exchange rate index of the soum strengthened by 0.8% compared to December, the Central Bank reported.
According to the Central Bank, the soum strengthened by 5.4% compared to the corresponding period of 2021, and the base month – by 6.3% compared to June 2018.
In January, the strengthening of the soum was due to the devaluation of exchange rates of trading partners, as well as the high level of domestic inflation compared to trading partners.
In the dynamics of the real effective exchange rate index in January of this year:
- increasing factors: exchange rate fluctuations of trading partner countries - 3.1%, domestic inflation – 0.9%, the soum exchange rate – 0.3%;
- reducing factor: inflation of trading partner countries – 3.5 percentage points.
What was the dynamics of the currencies of the partner countries against the US dollar?
- The Russian ruble depreciated by 3.4% (from 74.8 to 77.3). This is explained by the lack of consensus on geopolitical issues between Russia and the West and high uncertainties;
- The Kazakh tenge strengthened slightly (by 0.07%) against the background of rising oil prices;
- The Turkish lira fluctuated during January 2022 and strengthened slightly. This was largely due to the large-scale interventions carried out in December last year and the measures taken by the Turkish government to support the national currency;
- The Chinese yuan was formed with small fluctuations during January and remained almost unchanged from the previous month.
The Central Bank’s comment also said that inflation continued to rise in partner countries – Russia, Turkey and Kazakhstan.
Earlier, the Central Bank said in January that the growth of prices for basic consumer goods and services was 0.9% (1% in 2021) and the annual inflation rate was 9.8%. According to a subsequent CB poll, inflation felt by the population fell 0.8% to 15.4%.
