Deputy Finance Minister of Kazakhstan Dauren Suleimenov stated that the suspension of oil transportation via the Caspian Pipeline Consortium (CPC) will not significantly affect the tenge exchange rate. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
According to Suleimenov, more than 80% of Kazakhstan's oil exports are carried out via the CPC, but a drop in oil prices could affect the tenge, while the suspension of transportation will not have a direct impact. He said: "The suspension of oil transportation will not directly affect the tenge exchange rate, as oil prices are set on the global market."
The Deputy Finance Minister also noted that work is underway to diversify Kazakhstan's oil exports. He added: "We are developing other export routes, such as to China and via the Baku-Tbilisi-Ceyhan pipeline."
According to Suleimenov, the main factors influencing the tenge exchange rate are global oil prices, the Russian ruble exchange rate, and the domestic economic situation. He explained: "The suspension of transportation via the CPC may cause temporary difficulties, but it will not have a long-term impact on the tenge."
Earlier, various forecasts were made regarding the suspension of oil transportation via the CPC. However, Suleimenov's statement confirms that this situation will not significantly affect the tenge exchange rate.