EFTA01379407.pdf

22 December 2017 EM Currency Handbook 2018: Still Fuel in the Tank Kazakhstan The tenge is the monetary unit of Kazakhstan, USD/KZT exchange rate introduced in November 1993 to replace the ruble at a 1500 rate of 1 tenge = 500 rubles. A floating exchange rate 4000 regime was introduced in April 1999. However, the 3500 tenge remained a managed float and there was limited 3000 flexibility against the dollar or ruble in recent years. In August 2015, the tenge shifted to a free float. Due to 2500 this change, the tenge lost 30% of its value in a single 200 0 day. However, the transition to a free float is not yet 1500 complete and in practice the currency remains heavily 1000 managed. 500 0.0 The NBK is accountable to the Kazakh President, but 2004 2003 2006 2007 2001 2009 2010 2011 2012 2013 2014 2015 2016 2017 within the limits of authority granted by the legislation, US0NZT is independent in its activity. Its primary objective is to tow bubo.* Sint Sibemberp are* IP ensure price stability, i.e. keeping inflation within the Bank's defined range of 6-8%. In 2015, the NBK announced plans to increase the efficiency of the interest rate channel of the transmission mechanism by USD/KZT and 3M KZT implied yield expanding the system of tools for regulating liquidity 120 MOO and also introducing a new "base" interest rate. The interest rates of monetary policy tools will be linked to 100 5409 the base rate. Standing facility interest rates will form 90 1300 the upper and lower limits of the money market rate fluctuations. In the event of tightening or easing of 60 1200 monetary policy, the base rate may accordingly be 40 3100 raised or lowered, which will entail a change in the rest of the interest rates. 3000 Despite the planned transition to free float and liquidity so 2900 d 19 d .2 d 19 d d management via the rates corridor, neither of these Arts a* at 1 4' 1 06 41 have been completed yet. In the transitional phase, the 113,3/41T Ire 4,76441y649.ths —930X2T Art National Bank will adhere to an exchange rate corridor Sall*bb-NM. Sant regime and will allow for a more flexible exchange rate, to the extent that it will not be contrary to achieving the inflation targets. In the event of foreign exchange shocks, ensuring stability in the financial market will become the priority . Page 66 Deutsche Bank Securities Inc. CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0076869 CONFIDENTIAL SDNY_GM_00223053 EFTA01379407