The introduction of the mandatory sale of refined gold to the National Bank in 2011 resulted in significant positive outcomes, marking an important step in replenishing gold and foreign exchange reserves and developing Kazakhstan's gold mining industry, as noted by the regulator's press service on January 21.
The initial goals of the program have been achieved to date. Thus, the volume of gold and foreign exchange reserves reached a historical maximum of $45.8 billion by the end of 2024.
The production volume of refined gold bars in the country has significantly increased. This has allowed new companies to gain international recognition. For instance, the refining plant TОО “Tau-Ken Altyn” received accreditation from the London Bullion Market Association for its gold bars’ quality standards.
At the same time, due to the substantial rise in gold prices and production volumes, the scale of tenge emissions has significantly increased, resulting in a negative impact on inflation.
To reduce inflation to the target level of 5%, the National Bank decided to sell US dollars on the domestic foreign exchange market, obtained from the sale of gold previously purchased from local gold mining enterprises. The amount of currency to be sold 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.
Currency sales will be conducted in accordance with the principle of market neutrality, as assured by the National Bank. The equivalent of the quarterly volume of emissions in foreign currency will be evenly sold on the domestic foreign exchange market over the next quarter.
According to forecast data, the planned volume of gold purchases under the preferential right in 2025 is estimated at 70 tons, or about $6 billion at current gold prices.
To mirror the acquisition of refined gold in the IV quarter of 2024, the National Bank will sell foreign currency amounting to approximately 750 billion tenge during the I 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.