Kazakhstan's International Reserves Exceed $45 Billion Amid Gold Purchases

Kazakhstan's net international reserves surpassed $45 billion in January, marking a 3.29% month-on-month increase and a 29.7% year-on-year rise, according to data from the National Bank (NBK) released on February 11.

Net international reserves represent the difference between gross reserves and the NBK’s foreign currency liabilities. Gross reserves, in turn, consist of foreign currency assets and gold reserves, The Caspian Post reports citing The Astana Times.

In January, gross international reserves reached $47.1 billion. Foreign currency assets totaled $21.3 billion, and gold reserves - $25.8 billion. The increase was driven by growth in gold reserves.

Meanwhile, the National Fund’s foreign exchange assets decreased 0.56% to $58.5 billion. Thus, Kazakhstan’s net international reserves, including the National Fund’s assets, reached $103.5 billion.

The NBK builds reserves through domestic currency market operations, purchasing excess foreign currency earned by exporters and attracted from foreign investors that are not in demand by importers and investors.

Acquired funds are either held in foreign accounts or invested in liquid assets and gold. These reserves help maintain the tenge exchange rate and cover balance-of-payments deficits when needed.