Devaluation of Tenge in Kazakhstan’s Economy

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According to historical base on the official site, "The Commission has additionally consider a proposition to present JSC "Kazinvestbank" in the quantity of banks - members of the current agrarian loaning elements, given the accessibility of its client base, concentrating on agribusiness and the similarity of the bank's necessities FMSA "- said the press administration.

By press benefit, the individuals from the State Commission on modernizing the economy of Kazakhstan endorsed the course of execution of measures for the rural credit and the recommendations made.

Immediate devaluation of the tenge was accomplished. Is it good or bad, but it's done. It is obvious that now there are the positive results and we must soberly reflect on and assess what is achieved and what is obtained in negative terms, as well as identify ways to eliminate or at least reduce the negative consequences for the economy and population of the country.

Basically, it should be noted that the devaluation in the conditions of the world crisis is an inevitable attribute of a market economy. For Kazakhstan, as well as other countries of the world, under the circumstances, this measure was unavoidable. First of all, it allows you to increase the competitiveness of the economy, to improve the working conditions for exporters, which will save or create new jobs, as well as less costly to get out of a crisis situation. As a result of the devaluation in less wasted gold reserves of the country, created the necessary conditions inflow of foreign capital.

Importantly, the devaluation will inevitably lead to higher prices for imported raw materials, finished products and consumer goods. However, importers of this great will not be affected, as they will inevitably and quickly shuffle these costs to the price of finished goods or imported goods. They will not operate at a loss. In this we have seen after 4 February 2015, when the prices of goods and products imported by imports, have increased significantly, although importers sell products and goods purchased on imports, even at prices and exchange rate of tenge devaluation. Thus, from the devaluation primarily affected the population at the expense of a rise in prices.

Imagine how many times devalued the national currency tenge since the introduction to the present, when the bread was worth between 20 and 40 tiyn, and today is from 50 to 75 tenge. As you know, in January 2015 made the indexation of pensions by 30%, and social benefits from the state budget increased by an average of 9%, in addition, this summer will be increased salaries of public sector employees, civil servants. But at the same time, food prices and utility tariffs have increased more than the increase for pensioners and for the disabled people.

So what is the process we are witnessing in Kazakhstan's economy? Inflation is a rise in the general price level or devaluation - a one-time devaluation of the national currency, many confuse this concept with the denomination (tilting zeros in denominations of banknotes, currency).

In my opinion, in the world there is a certain mass of resources (natural resources), which is expressed in general terms, backed up by gold reserves, the currency of any country. And at the same time, while reducing the share of individual countries in this mass decreases and the welfare of the citizens of the country. That is not by chance that Mexico is one of the poorest countries in the world, as the United States and Canada have taken its share, the same situation and Africa, due to which there is a good European country. Thus, if you started earning more than others, then someone has become poorer. This principle also applies in the accounting records: with an increase (decrease) in any balance sheet items on the assets, respectively, increase (decrease) certain liabilities section on the article. I believe that capitalism is not a good system in which the rich get richer and the poor poorer, but also the Chinese socialism with a human face is not nothing better.

The global financial crisis has halted inflation, and can agree with this, he also revealed the true value of goods and services, but then why prices are rising?

Money supply in the Republic of Kazakhstan has a more or less stable size. You can distribute the money in another way: to increase social obligations of the state and civil servants' salaries, but at what expense? And this is quite difficult question to answer. For example, the Russian social obligations to its citizens have been increased due to the increase of social tax to 34%. And increasing the size of salaries of civil servants at the expense of the general staff and thus increasing productivity. And we, most likely at the expense of income from oil exports, because tax collection remains low since 2007. Then, before the release of this huge money supply is a process of gradual devaluation of money. Thus, the money must be earned effective work with the issuance of the output of competitive products and quality services. At Formula business "Buy cheaper - sell expensive" ceases to work, the production business does not want to deal with, since it is extremely unprofitable, life itself will force us to get off the raw material of the pipe and increase productivity, introduce and master innovation.

Inflation may be due to several factors such as rise in the production of goods (increased cost), an increase in transport costs for products and goods manufactured outside the Republic of Kazakhstan - the increase in customs duties and tariff escalation, increasing raw material prices. Of course, the growth of some types of products will continue due to the extreme drought in the next two years, but I can not agree that the increase tariffs for public utilities and other products, which cost in the production has not changed.

It is clear to everyone that in order to increase pensions and wages of civil servants is to improve the welfare of citizens of Kazakhstan. But if we consider the well-being of the citizens of other countries (such as the United Arab Emirates, the United States, Britain, France and Germany), it is an event for us:

- Travel to other countries (purchase of travel, flight, your hotel expenses), that for people above states is commonplace;

- The purchase of large home appliances (LCD TV, laptop, refrigerator, automatic washing machine, etc.);

- Improvement of living conditions.

The level of prices, for example, household appliances in the world are relatively the same, but the levels of income of the population of each country differ