The Influence Of National Currency Tenge To Economy Of Country

The introduction of tenge began in accordance with the Decree of the President of the Republic of Kazakhstan Nursultan Abishevich Nazarbayev "On the introduction of the national currency" dated November 12,1993.From on November 15,tenge began to apply as a new means of payment and unit of account in the country.The introduction of the tenge is one of the most prominent pages in the history of the development of independent Kazakhstan,and today we can appreciate its historical significance for the present and future of our country.Without its own national currency,it is impossible not only to pursue an independent economic policy,but also to determine the choice of a country's own development path,ensure genuine sovereignty,and protect national and economic interests.1995 year,as it is known,the main and positive results of the development of the economy of Kazakhstan in 1995 was the slowdown of the economic recession and a significant decrease in the level of inflation.The results of the year showed that using monetary policy instruments,one can influence the level of inflation,reducing its monetary component.Since this year,the issuance of policy loans has been discontinued.The function of lending to the economy passed from the National Bank to second-tier banks,and it began to perform the monetary and currency regulation functions typical of central banks,lending to second-tier banks primarily in order to maintain their liquidity.An important event of the year was also the opening of its Banknote Factory in Kazakhstan,the birth and development of the interbank foreign exchange market,the transition to an electronic trading system for trading(ETS).In 1996 year,for the first time during the years of development of Kazakhstan,as a sovereign state,GDP growth was observed,the rates of inflation and devaluation of the tenge exchange rate significantly decreased.An important milestone was the adoption in July 1996 by Kazakhstan of obligations under Article 8 of the IMF Agreement,which formalized the convertibility of the tenge on current operations and allowed it to switch to a multilateral payment system,free from restrictions.This year Kazakhstan was one of the first in the CIS to adopt the Program for the transition of the banking system to international standards in terms of asset classification,management quality,new accounting principles and a plan of accounts.The beginning of trading in currency futures at the Kazakhstan Stock Exchange dates back to the same period.In the 1997 year,was marked by the beginning of active repo and reverse repo operations,the introduction to the operational practice of the exchange of swap operations.In the1998 year,the conditions of aggravation of the crisis in the global financial markets and deterioration of the export situation in Kazakhstan,the main objectives of the National Bank's monetary policy were to ensure the stability of the financial system,preserve the stability of the national currency and strengthen the banking system.To protect the country's domestic financial sector,the National Bank tightened its monetary policy.One of the significant events of 1998 was the termination of the practice of direct lending to the national budget deficit by the National Bank.On the banking system.The global liquidity crisis that began in 2007 clearly demonstrated that the domestic banking system became a hostage to the situation when state financial oversight did not keep pace with the development of banks,with the result that problems accumulated in the banking system.And Kazakhstan was no exception.We saw what was happening in the USA,in other developed countries.In mid-2007,the external debt of the banking system of Kazakhstan reached 50% of GDP.In 2009,the situation in the country's banking system reached a critical point when,against the background of the problems that arose,serious government intervention was required.As a result of the restructuring of banks' debt and measures to strengthen the regulatory system of the financial sector,the external debt of Kazakhstan's banks fell to a minimum value of about 5% of GDP.For 6 years,the external debt of banks in Kazakhstan has decreased by $ 34 billion.In particular,the postponement of a cardinal solution to the problem of “nonperforming” assets does not contribute to the qualitative growth of the banks' business,and in the future will not allow them to respond quickly to the changing economic situation.Currently,the entire infrastructure has been created to solve the problem of “nonperforming” assets.Banks should be activated in this direction,and the National Bank,for its part,will support the necessary legislative initiatives to simplify and improve the efficiency of the relevant procedures.The institute of brokers-dealers,which,in addition to performing their traditional functions,began to act as financial consultants and underwriters in the initial placement of securities,market makers and specialists in securities listed on KASE official lists,received further development.In order to ensure full access of citizens of Kazakhstan living in various regions of the country to financial services,active work is being carried out to develop the postal savings system.