Joint statement of the Government of Kazakhstan and National Bank on global oil market and measures to ensure macroeconomic stability

The disagreement between the OPEC+ main oil exporter countries on the limitation of oil production led to a significant decrease in global oil prices. Today, March 9, 2020, Brent crude oil is traded around $31-33 per barrel on world markets, falling by more than 30%.

Under these conditions, the Government and the National Bank declare that ensuring the macroeconomic stability and effectiveness of fiscal policy, managing inflationary processes and maintaining social stability remain the priorities of the state policy.

Regular monitoring of the current situation in foreign markets and the impact on the economy of Kazakhstan is carried out. For the prompt adoption and implementation of the necessary decisions, a working group was created under the leadership of the prime minister.

Government budgetary measures will be aimed at fulfilling social obligations in full. Measures will be taken to reduce non-priority budget expenditures.

The Government and local executive bodies will pay special attention to preventing unjustified price increases, especially for socially significant goods and services.

Tight control over observance of labor rights of citizens will be ensured, including preventing the reduction in the number of employees and ensuring timely payment of wages.

As part of its mandate, the National Bank has the appropriate resources and will take the necessary steps to ensure price stability by tightening monetary policy by raising the base rate and pursuing an adequate exchange rate policy. These measures will limit the acceleration of inflation and prevent the excessive volatility of the national currency.

To ensure stabilization of the foreign exchange market and financial stability, the National Bank will carry out the necessary foreign exchange interventions. The National Bank has sufficient gold and foreign currency assets, as well as the necessary instruments, including regulatory ones, to prevent speculative operations with the tenge exchange rate.

The Agency for Regulation and Development of the Financial Market will take measures to maintain stability in the financial market.

The Government and the National Bank have the necessary resources to minimize the negative consequences and ensure the sustainability of the socio-economic development of the Republic of Kazakhstan.

March 9, 2020

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