Decline in Cash Usage Soars to Apex in Kazakhstan
Kazakhstan witnesses a significant drop in dollar demand among locals in April, with net sales amounting to $66.9 billion—the lowest figure since June 2022, even after adjusting for inflation, according to the First Credit Bureau. This decrease represents a 9% fall compared to March and a 54% decline year-on-year.
Similar trends are observed for euros, with a net sale of just 4.9 billion tenge, marking a 58% decrease from March and an 85% decrease from the previous year. Concurrently, the tenge depreciated against all major currencies in April. The average dollar rate rose by 3.3%, while the euro strengthened by 7.5%, and the ruble increased by 6.7%.
Despite the tenge's weakness, interest in cash rubles remains low. Kazakhs continue to dispose of them, setting a record of 30.8 billion tenge net ruble purchases by exchange offices in April, a figure not seen since at least 2020.
On May 26, 2025, the exchange rate of the US dollar against the Kazakhstan Tenge (KZT) displayed a minor strengthening on the stock exchange, with the weighted average exchange rate being approximately ₸510.92 per US dollar. In exchange offices, the rate for 1 KZT was around 0.002 USD, representing a slight appreciation relative to earlier in the month when rates were closer to 0.0019 USD. This indicates moderate stability with a slight strengthening of the Tenge in late May 2025 compared to previous weeks.
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The decreased dollar demand among locals in Kazakhstan is affecting multiple sectors, including the industry, finance, and business as the drop in demand impacts various trade operations.
The instability in the Kazakhstan Tenge (KZT) exchange rate, particularly against the US dollar, might influence the overall performance of the domestic finance and business industries, as fluctuations in the currency market can alter investment decisions and cost structures.
