FOREIGN EXCHANGE RATE REGIMES IN KAZAKHSTAN

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Date

2017

Journal Title

Journal ISSN

Volume Title

Publisher

СДУ хабаршысы - 2017

Abstract

Abstract. The work investigates the main affecting factors to domestic currency volatility and also provides an extensive analysis about the relationship of oil prices and nominal exchange rate of tenge against US dollars. The paper discusses the relationship between oil prices and exchange rate of KZT vs. USD and measures the marginal effect of oil prices on domestic currency through the Vector Error Correction Model (VECM). It examines about the affecting factors to domestic currency, exactly nominal exchange rate of KZT vs. USD according to the Inflation Report of NBK. The analysis, made by the Vector Error Correction Model (VECM) for time series data. Popular model because it allows for the existence of an underlying or fundamental link between variables (the long run relationship) as well as for short run adjustments (i.e. changes) between variables, including adjustments to achieve the cointegrating relationship.

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Keywords

оil industry, local content, exchange rate, Kazakhstan., СДУ хабаршысы - 2017, №2

Citation

N. Torekhan / FOREIGN EXCHANGE RATE REGIMES IN KAZAKHSTAN / 2017