Russian, Kazakh currencies fall with oil price

Plummeting oil prices continue to drastically effect weak oil-dependent countries

Russian, Kazakh currencies fall with oil price

World Bulletin / News Desk

The national currencies of oil-dependent Russia and Kazakhstan has continued to fall, affected once again by the rapidly falling global price of oil.

The shake up in the foreign exchange market of the former Soviet republics came as the price for Brent crude oil fell on August 19 to $47.22 per barrel.

Kazakhstan's currency, the tenge, hit its lowest point Thursday morning since February with one U.S. dollar costing 198 tenges, losing over 23% of its value. 

The ex-Soviet country's 75-year-old President Nursultan Nazarbayev said Wednesday that future economic planning in the country should be adjusted to assume oil prices at $30-40 per barrel and that belt-tightening measures would also affect showy national projects.

"In the past years, we have built a lot, increased staffing and salaries. Now however, there is a lack of funds and in connection with this there will be strict limitations on new projects," Nazarbayev told top government officials.

In Russia, the ruble also continued to fall on August 20 to its lowest value in six months with one U.S. dollar being worth more than 66 rubles and one euro garnering 73 rubles.

Russia's Sberbank CIB said that if the price of oil falls to $45 per barrel, one dollar could cost more than 70 rubles.  

Güncelleme Tarihi: 20 Ağustos 2015, 09:37
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