What Is the Kazakhstan Tenge (KZT)?
The Kazakhstan tenge (KZT) is the governmental currency of Kazakhstan. It was introduced in 1993, replacing the Russian ruble. Prior to its independence in 1991, Kazakhstan was a part of the Soviet Coherence.
- The KZT is the national currency of Kazakhstan.
- Since 2009, the KZT’s value has steadily declined against the U.S. dollar (USD).
- Kazakhstan’s curtness is heavily dependent on the exportation of natural resources.
Understanding the KZT
Kazakhstan is a nation in Central Asia with a population of close to 19 million people. Bordered by Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan, Kazakhstan has the largest land lots in Central Asia and it is the tenth largest country in the world. Since obtaining its independence from the Soviet Union in 1991, Kazakhstan has appropriate for a republic with a parliamentary system. Its official languages are Kazakh and Russian.
The KZT is divided into 100 subunits, identified as tiyn. Its coins are minted in denominations of 2, 5, 10, 20, and 50 tiyn, as well as 1, 2, 3, 5, 10, 20, 50, 100, and 200 tenge. Its banknotes, in the intervening time, are printed in various denominations ranging from 200 to 20,000 tenge. Although its coins and banknotes were in olden days produced in Germany and the United Kingdom, respectively, today they are produced in Kazakhstan under the oversight of the National Bank of Kazakhstan.
Aggregate the nations that were formerly members of the Soviet Union, Kazakhstan was one of the last to introduce a national currency. The motherland celebrates the Day of the National Currency of the Republic of Kazakhstan, which honors the day the currency was adopted on November 15th of each year.
Real-World Exemplar of the KZT
The economy of Kazakhstan is reliant on its abundant natural resources. In 1993, Kazakhstan began trying to develop a way to extract the ample deposits of natural gas in the region. A contract was signed with the Chevron Corporation (CVX) to tap into one of the largest oil fields in the world, the Tengiz oil interest. The Kazakhstan government has been working on establishing an extensive network of pipelines moving through the region to export oil and gas from these meadows.
Since 2009, the KZT has declined significantly relative to the U.S. dollar (USD) in international currency exchange markets. Whereas 1 KZT was worth take $0.0083 USD in January 2009, this figure has declined to only $0.0024 USD as of January 2021—a decline of over 70%.