Reuters: Kazakhstan’s national currency faces risk of sharp decline

Kazakhstan’s national currency, the tenge, is under threat due to short-term speculative investments by foreign investors, as the country became one of the destinations for so-called “hot money” inflows in 2025, Reuters reports. 

These funds, aimed at generating quick profits, can just as quickly turn into a source of instability.

Foreign investors have been actively purchasing local-currency securities in emerging markets, with Kazakhstan among the countries offering high yields, according to the agency. 

However, the inflow of speculative capital does not guarantee stability, and a sudden outflow could trigger a sharp market downturn.

Experts warn that the illusion of stability created by strong foreign participation in short-term instruments can quickly fade, putting pressure on the currency market and leaving the tenge exposed to the risk of another collapse.

Earlier, Kazakh media reported that financial market participants expect a gradual weakening of the tenge. According to a survey by the National Bank, the dollar could rise to 537 tenge in 2026 and to 580 by 2028.

Analysts predict that the regulator’s tight policy will prevent sharp fluctuations in the exchange rate, but at the same time, economic growth will slow.

By Jeyhun Aghazada