Tenge Becomes Europe and Asia’s Strongest Currency — Financial Times Explains Why
Economy
Kazakhstan’s tenge has become the best-performing currency in Europe and Asia against the US dollar since the beginning of 2026. According to the Financial Times, the tenge has appreciated by 9.7% this year, driven primarily by rising foreign investor interest in Kazakhstan’s government bonds.
Foreign holdings of tenge-denominated government bonds have increased from about $2 billion to $5 billion over the past year. The mechanism is straightforward: investors need to buy tenge before purchasing local bonds, creating additional demand for the currency.
Kazakhstan’s high interest rates and slowing inflation have also strengthened the appeal of its domestic assets. In July, the National Bank of Kazakhstan cut its policy rate to 16.75%, from a previous level of 18%.
The tenge’s rally began after the dollar reached 549.15 tenge in October 2025. By August 21, 2026, the official exchange rate stood at 458.23 tenge per US dollar.
The Financial Times notes that the latest appreciation is difficult to explain solely through oil revenues. Other factors include improving foreign investor access to the domestic market, plans to connect Kazakhstan’s government bonds to Euroclear, and the prospect of inclusion in the JPMorgan GBI-EM index.
The National Bank also says the short-term trajectory of the tenge will depend on market expectations, quarterly tax payments, global market conditions and geopolitical developments.
Kazakhstan’s high interest rates and slowing inflation have also strengthened the appeal of its domestic assets. In July, the National Bank of Kazakhstan cut its policy rate to 16.75%, from a previous level of 18%.
The tenge’s rally began after the dollar reached 549.15 tenge in October 2025. By August 21, 2026, the official exchange rate stood at 458.23 tenge per US dollar.
The Financial Times notes that the latest appreciation is difficult to explain solely through oil revenues. Other factors include improving foreign investor access to the domestic market, plans to connect Kazakhstan’s government bonds to Euroclear, and the prospect of inclusion in the JPMorgan GBI-EM index.
The National Bank also says the short-term trajectory of the tenge will depend on market expectations, quarterly tax payments, global market conditions and geopolitical developments.
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