Tenge Surges as Foreign Investors Flock to Kazakhstan Bonds

Kazakhstan's tenge has become the strongest currency in Europe and Asia this year, appreciating by 9.7 percent against the US dollar since January 2026.

The significant growth is attributed to increased interest from foreign investors in Kazakhstan's government bonds, which have reached a record $5 billion by June this year, up from nearly $2 billion a year ago.

The high interest rates offered by Kazakhstan, currently at 16.75 percent, are a major draw for investors. The country's central bank lowered the base rate in July, while annual inflation stood at around 10 percent in June, down from nearly 13 percent in September 2025.

Dmitry Dolgin, chief economist at ING, believes that the tenge's strengthening is more linked to capital flows than trade flows. The plan to enable settlement of Kazakhstan's domestic government bonds through the Euroclear international clearing system has also made the market more accessible for foreign investors.