“The volumes of exchange transactions for the yuan-tenge currency pair depend on the needs of market participants. Monthly fluctuations in volumes may be due, among other things, to the seasonal nature of commodity flows, including an increase in supplies during certain periods of the year,” the National Bank said in response to a question from experts about the high volatility of monthly purchase and sale volumes for the tenge-yuan pair on Monday.
The average monthly volume in 2024 was 507 million yuan, that is, the tenge-yuan currency pair is characterized by low trading volumes compared to such currency pairs as tenge-dollar or tenge-ruble. In this regard, the increase in volumes for this currency pair does not have a significant impact on the local currency market, said the National Bank.
The increase in yuan trading volumes may be due to the growth of the dollar index and the decline in the yuan exchange rate. A possible reason for the decline is the expected deterioration in relations between China and the United States after Trump takes office, according to another of our commentators, analyst at Eurasian Capital JSC Ali Sagyndykov.
“One of the measures aimed at strengthening the yuan exchange rate will be the placement of government bonds by the People’s Bank of China on January 15 in the amount of 60 billion yuan or $8.2 billion, the largest of all time,” Sagyndykov said.
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