JPMorgan - KASE

Foreign Trade
Following the devaluation of the tenge in 1999, Kazakhstan’s exports increased by 2.0 per cent. in
1999 to U.S.$5,988.5 million, while imports decreased by 15.3 per cent. to U.S.$5,648.2 million,
resulting in a surplus trade balance of U.S.$340.3 million. In 2000, the surplus trade balance
increased to U.S.$2.4 billion, with Kazakhstan’s exports increasing by 36 per cent. to U.S.$9.3 billion
and imports increasing by 21 per cent. to U.S.$6.8 million. General merchandise trade data are
based on external trade statistics compiled by the Statistics Agency from customs declarations. The
data are adjusted by the NBK in respect of coverage classification and valuation for balance of
payments purposes. The main adjustments are to exclude the cost of freight and insurance from
imports, to include “shuttle” and undeclared trade and to adjust for barter operations.
The following table sets out Kazakhstan’s foreign trade for the periods indicated:
Year ended 31 December
2001 2000 1999 1998 1997
(In U.S.$ millions)
Exports ................................... 9,119.7 9,288.1 5,988.5 5,870.6 6,899.2
Imports ................................... (8,223.9) (6,848.2) (5,648.2) (6,671.5) (7,175.6)
Tradebalance ............................. 895.7 2,439.9 340.3 (800.9) (276.4)
Source: NBK
Official International Reserves
The NBK managed to increase its international reserves in 1999 while servicing Kazakhstan’s
highest external debt volume over the past few years due to an improvement in external trade
conditions and receipts from international borrowings and privatizations. Gross international
reserves grew by 2.0 per cent. (U.S.$38.9 million) to U.S.$2.0 billion in 1999. Kazakhstan’s gross
international reserves increased from 3.1 months of import coverage at the end of 1998 to 3.6
months at the end of 1999. In 2000, gross international reserves grew by U.S.$93.1 million to
U.S.$2.1 billion.
Kazakhstan’s international reserves are administered and controlled by the NBK, which is a
separate legal entity. Kazakhstan’s law provides that such international reserves may not be
pledged, nor may the NBK be required to make international reserves available to support the
Government’s borrowings.
The Government has established the National Fund of Kazakhstan (the “National Fund”) in
August, 2000. The National Fund accumulates state revenues earned from the sale of
Kazakhstan’s hydrocarbons and mineral resources. By December 2001, the National Fund had
accumulated U.S.$1,240.4 million in assets and total international reserves, including the National
Fund, were U.S.$3,748.4 million. By 30 June 2002, the National Fund had U.S.$1,655.6 million and
total international reserves were U.S.$4,491.9 million.
The following table sets forth Kazakhstan’s total gross international reserves as at the dates indicated:
30 June
31 December
2002 (2) 2001 2000 1999 1998 1997
(In U.S.$ millions)
Foreign exchange reserves . ............ 2,278.4 1,995.0 1,594.0 1,479.9 1,460.2 1,767.4
Gold (1) ............................... 555.7 510.7 501.8 522.8 503.6 523.9
Gross international reserves ............ 2,834.1 2,505.7 2,095.8 2,002.7 1,963.8 2,291.2
Import coverage (including gold)
(months. ........................... N/A 3.6 3.0 3.6 3.1 3.3
Source: NBK
Notes:
(1) Gold is valued at the market price prevailing at the beginning of the relevant period.
(2) Data as at 30 June 2002 does not include the National Fund.
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