Tenge is the currency of independent Kazakhstan

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Tenge is the national currency of Kazakhstan, which has been in circulation on the territory of the republic since 1993. At many international banknote exhibitions, the national bank of the country has repeatedly received awards for the best design and degree of tenge protection. The paradox is that, with its highest level of protection, the currency, according to the results of 2015, is considered the cheapest in Europe.

Backstory

The very name "tenge" was given to the currency in the early Middle Ages, when money called "tanga" circulated on the territory of Kazakhstan and Central Asia. Later, the peoples of Eastern Europe had the word "money", also meaning currency. And today the understandable word "money" has not changed its historical meaning.

The history of the creation of the national currency of Kazakhstan begins in 1990. At that time, the ruble of the Soviet Union was in circulation in the republic. In order to make the financial system of the republic more independent of Moscow, President Nursultan Nazarbayev, together with the Supreme Council of the Kazakh SSR, created a law that controls the entirecountry's banking system.

This happened in December 1990. From that moment, the transition to market relations began under the still existing planned economy of the USSR. All banks were divided into two categories: the first included the Kazakhstan branch of the State Bank of the USSR, the second level included several commercial banks pursuing an independent policy. However, there was one thing. The country did not have its own currency, so there were still some restrictions on the freedom of action of the financial system of Kazakhstan. Dependence was on the ruble and the State Bank of the USSR.

New project

Under such conditions, N. Nazarbayev instructed to start preparing the tenge. The currency was to replace the ruble. A state commission on the national currency was created, headed by S. Tereshchenko, who was then prime minister. All documentation was handled by D. Sembaev and his team. Daily control over everything that happened was carried out personally by the president.

Designers were asked to perpetuate historical figures and architectural monuments on the currency. It was even proposed to depict N. Nazarbayev on one of the banknotes, to which he replied with a categorical refusal.

The working group studied a huge amount of information that reveals the entire experience of introducing national currencies in many countries of the world, including the CIS countries. A whole package of reforms was prepared, affecting the field of politics, economics and finance. The National Bank has prepared 18 documents regulating the reform process. It was trulythe most complicated process that required great attention and intellectual capabilities from the country's leadership.

Historic moment

Preparatory work was completed in the summer of 1993. They decided to print banknotes in the UK. Harrison & Sons is the company that completed this order. All operations were carried out in conditions of strict secrecy. 4 IL-86 planes made 18 flights to England and back. According to all documents, there was information that the planes were carrying construction equipment. The coins were ordered from Germany. Special underground bunkers were prepared on the territory of Kazakhstan to store the new currency.

On the eve of the introduction of the tenge, the President of Kazakhstan personally addressed the people. The exchange of old rubles for tenge began on November 15, 1993 at 8:00, ended on November 20 of the same year at 20:00. For 6 days, more than 950 billion rubles were withdrawn from circulation. The exchange rate (ruble to tenge) was 500:1.

Thus, on November 15, 1993, a historic event took place: the tenge, the currency of independent Kazakhstan, was introduced.

Tenge: reflection of history

Banknotes of 1, 3, 5, 10, 20, 50, 100, 200, 500 tenge were put into circulation. In addition, 1 tenge was equal to 100 tiyns, so there were tiyns in circulation for some time.

As expected, on the first banknotes, the obverse reflected a historical person against the backdrop of nature, while the reverse depicted architectural monuments with elements of nature. Initially, the maximum value was500 tenge. Banknotes worth 1000 tenge entered circulation in 1995, 2000 - in 1996, and 5000 - in 1998. Such historical figures as Sh. Valikhanov, S. Aronuly, Kurmangazy, A. Kunanbaev, al-Farabi, khans Abylay and Abulkhair were portrayed.

Degrees of protection

Tenge is the currency of Kazakhstan, which has one of the most effective sets of protection levels in the world. There are 17 of them in total. Some of them have been used for the first time in world practice, such as, for example, the anti-copy element, iris printing, golden intaglio, etc. This has led to the fact that many currencies of developed and developing countries have adopted the practice of Kazakhstan. What is tenge, whose currency it is - many have learned.

From the history of devaluations

All world currencies tend to depreciate, tenge is no exception. For the first year of existence, inflation was 1158%, the next year - 60%. The lowest level of inflation was recorded in 1998 and amounted to about 2%.

Amid falling oil prices, most currencies of exporting countries began to depreciate. It touched the tenge like no other currency. In 2015, the tenge was recognized as the most depreciated currency in Europe. For comparison: at the beginning of the summer of 2015, 1 USD cost an average of 150 tenge, and by the end of summer - the beginning of autumn of the same year - already 190. At the beginning of 2016, the rate was 380-390 tenge for 1 dollar.

Thus, the history of the medieval words "tanga", "tenga", "danga" was transferred to the modern world, where it continues tenge - currencymodern Kazakhstan.