The introduction of the mandatory sale of refined gold to the National Bank in 2011 has led to significant positive outcomes, marking an important step in replenishing gold and foreign exchange reserves and developing Kazakhstan's gold mining sector, as noted by the regulator's press service on January 21.
The initial goals of the program have now been achieved. The size of the gold and foreign exchange reserves reached a historic maximum of $45.8 billion by the end of 2024.
The volume of refined gold bars produced in the country has significantly increased. This has allowed new companies to gain international recognition. For instance, the refining plant LLP "Tau-Ken Altyn" received accreditation from the London Bullion Market Association for its gold bar quality standards.
At the same time, due to a substantial rise in gold prices, the scale of tenge emissions has increased significantly, leading to a negative impact on inflation.
To reduce inflation to the target level of 5%, the National Bank has decided to sell U.S. dollars on the domestic currency market, obtained from the sale of gold previously purchased from local mining companies. The amount of currency for sale will be equivalent to the volume of tenge emissions made by the National Bank for the purchase of gold.
The implementation of the new mirroring mechanism allows for the adaptation of monetary policy to modern challenges while maintaining macroeconomic stability, according to the National Bank.
Sales of foreign currency will be conducted in accordance with the principle of market neutrality, the National Bank assures. The equivalent of the quarterly volume of foreign currency emissions will be evenly sold on the domestic currency market over the next quarter.
According to forecasts, the planned volume of gold purchases under the priority right in 2025 is estimated at 70 tons, or approximately $6 billion at current gold prices.
To mirror the acquisition of refined gold in the fourth quarter of 2024, the National Bank will sell foreign currency amounting to around 750 billion tenge in the first quarter of 2025. It should be noted that mirroring operations will not affect the volume of gold and foreign exchange reserves, as gold purchases will be offset by currency sales on the exchange.
The volumes of currency sales will be published on the official website on a monthly basis.