The Kazakhstan Tenge (KZT) is the official currency of Kazakhstan, a Central Asian country.

The Tenge was introduced on November 15, 1993, replacing the Soviet Ruble, following the country’s independence from the Soviet Union in 1991.

The National Bank of Kazakhstan is responsible for issuing and managing the Kazakhstan Tenge.

Exchange Rate System

The Kazakhstan Tenge operates under a floating exchange rate system, where 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 if necessary to maintain stability or prevent excessive fluctuations.

This system allows the Kazakhstan Tenge to respond to external shocks and changes in global market conditions while maintaining a certain level of stability.

Subdivisions and Denominations

The Kazakhstan Tenge is 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 primarily based on natural resources, such as oil, gas, and minerals, which make up a significant portion of the country’s exports.

Other key sectors include agriculture, manufacturing, and services.

However, Kazakhstan faces several economic challenges, including overreliance on natural resources, high levels of corruption, and income inequality.

The government has been working on policies to diversify the economy, improve infrastructure, and attract foreign investment.

Summary

In summary, the Kazakhstan Tenge is the official currency of Kazakhstan and is managed by the National Bank of Kazakhstan.

The currency operates under a floating exchange rate system, with its value determined by market forces and potential intervention from the Bank.

The Kazakhstan Tenge is subdivided into tiyn and is issued in various banknote and coin denominations.

Kazakhstan’s economy is primarily based on natural resources, but the country faces challenges related to overreliance on natural resources, corruption, and income inequality.