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Emerging-Market Rout Strains Pegs as Tenge Shifts to Free Float

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Thu, 20 Aug 15 4:17 PM | 78 view(s)
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Emerging-Market Rout Strains Pegs as Tenge Shifts to Free Float

by Nariman Gizitdinov and Natasha Doff

Updated on August 20, 2015 —

Kazakhstan relinquished control of its exchange rate in the latest sign emerging nations will stop defending their currencies after China roiled global markets by devaluing the yuan.

The central Asian nation, which counts Russia and China as its top trading partners, said it was switching to a free float, triggering a 23 percent slide in the tenge to a record 257.21 per dollar. Following the shock yuan devaluation last week, a gauge of 20 developing-nation exchange rates capped its longest slump since 2000, and losses continued this week as Vietnam devalued the dong and currencies from Russia to Turkey fell at least 3 percent.

more:

http://www.bloomberg.com/news/articles/2015-08-20/kazakhstan-scraps-currency-trading-band-moves-to-free-float




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