What Is The Currency In Kazakhstan?

January 26, 2024

The official currency of Kazakhstan is the tenge (KZT). In 1993, it was created to replace the Russian ruble. Kazakhstan was a part of the Soviet Union before gaining its independence in 1991.

More About The KZT

With a population of about 19 million, Kazakhstan is a country in Central Asia. Kazakhstan is the tenth biggest country in the world and has the greatest land area in Central Asia. It is bordered by Russia, China, Kyrgyzstan, Uzbekistan, and Turkmenistan. Kazakhstan has been a republic with a parliamentary system since gaining its independence from the Soviet Union in 1991. The two official languages are Russian and Kazakh.

The KZT is broken down into 100 smaller parts, or tiyn. Its coins are produced in the following values: 1, 2, 3, 5, 10, 20, 50, 100, and 200 tenges, as well as 2, 5, 10, 20, and 50 tiyn. Meanwhile, it prints banknotes in a range of denominations, from 200 to 20,000 tenge. The National Bank of Kazakhstan oversees the production of the country's coins and banknotes, which were previously made in Germany and the United Kingdom, respectively.

Kazakhstan was one of the last countries that had been a part of the Soviet Union to use a national currency. The nation marks the day the currency was introduced on November 15th of each year by celebrating the Day of the National Currency of the Republic of Kazakhstan.

A Real-World KZT Example

Kazakhstan's economy is dependent on its wealth of natural resources. Kazakhstan started working on finding a means to access the significant natural gas reserves in the area in 1993. To access one of the world's largest oil reserves, the Tengiz oil field, a deal was made with the Chevron Corporation (CVX). To export oil and gas from these areas, the Kazakhstani government has been trying to build a vast network of pipelines that traverse the area.

Since 2009, the KZT's value in relation to the US dollar (USD) has dramatically decreased in global currency exchange markets. 1 KZT was worth around $0.0083 USD in January 2009, but as of January 2021, it was only worth $0.0024 USD, a decrease of more than 70%.

If you are interested in more articles like this, here’s one about what new stocks you should invest in.

© 2024 Invest Currency. All Rights Reserved.