Tenge is the modern money of Kazakhstan

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

Let's talk about the history of the emergence of the modern monetary unit of Kazakhstan and its name, the current exchange rate to major currencies and possible successors within the Eurasian Economic Union.

Early currencies of current Kazakhstan

The Silk Road passing through the country contributed to the development of monetary circulation, leading many countries to the silver and gold standard. Small money was made from cheaper metals. In the 4th-5th centuries, concave copper disks were used, and bronze coins with a square-shaped hole were minted for mutual settlements with China.

For five centuries, the money of Kazakhstan has changed more than once, and by the X-XI century, the main circulation was made up of gold and silver dirhams. For minting dirhams, an alloy of silver and copper was used. Since the 13th century, the image of a lion and the sun, picked up by the khans of the Golden Horde, has firmly settled on Turkic coins.

Taraz and Otrar were the first cities to start mass minting coins. They began issuing their own banknotes in 1251, which was one and a half thousand years ahead of many neighbors, including Russia.

First reforms and new monetary units

The issued coins had a value depending on theircomposition: a trifle was minted from copper (felses), silver dirhams were a level higher, and gold dinars were the most valuable. In 1321, Khan Kebek decided to make changes: silver coins from 8 grams were renamed into a silver dinar (or kebek-dinar), and dirhems became copper. There were 6 dirhams in 1 kebek dinar.

The current name of the currency goes back to the reign of Tamerlane, who introduced tilli, tengi and pula. 1 till=21 tenge, 1 tenge=4 dirhams or 45-60 pul. The word "tenga" itself was used to refer to any coins and became the progenitor of the Russian units "denga" and the general designation "money". So the money of Kazakhstan played a role in the formation of monetary units and their names far beyond the borders of the country.

Farewell, ruble! Hello tenge

After the collapse of the USSR, Kazakhstan continued to use rubles longer than others, slowly introducing its own currency. Since there were no factories capable of printing banknotes on the territory of the republic, they were ordered in England. The new banknotes traveled by plane to the country of destination.

New money in Kazakhstan was introduced on November 15, 1993, and the exchange rate against the Soviet ruble was 1 to 500. This day became the date of honoring the national Kazakh currency. In 2015 tenge turned 22 years old. Unlike other CIS countries, there was no temporary money in the republic: Kazakhstan immediately introduced a national currency, making it easier for the population to switch between monetary units.

It is noteworthy that the full transition to the new currency took not a year, not a month, but only 6 days! Another interesting point: ifbanknotes were printed in England, then coins were ordered in Germany, so the current money of Kazakhstan has European roots.

Banknotes and coins of Kazakhstan tenge

Initially, the coinage of the republic's money consisted of tiyns: in 1 tenge - 100 tiyns. During the years of depreciation, tiyns went out of circulation, and as of May 2016, coins in denominations of 1, 2, 5, 10, 20, 50 and 100 tenge remained in circulation. The banknotes are issued in denominations of 200, 500, 1000, 2000, 5000 and 10000 tenge.

The design of banknotes has changed significantly in 2006. Then it was decided to print one side horizontally and the other vertically. This is one of the ways of the republic to show itself as a brave modern country. These principles also apply to urban development: the most original projects are accepted and implemented. On the front side of banknotes of the 2006 issue, the Baiterek monument (Astana) is depicted as a symbol of development. Interestingly, this year's banknotes have long been considered the most counterfeit-proof in the world. Each banknote representing the money of Kazakhstan had 18 levels of protection, some of which became an innovation and were later borrowed by other states.

In 2010-2012, updated banknotes of 1000, 2000, 5000 and 10000 tenge were issued. The new design reflected the historical events of recent years: the Asian Games-2011, the chairmanship of the OSCE, the anniversary of independence.

Latest innovations

To avoid confusion in banknotes of different series of issues, from the 1stdays of 2016, banknotes in 2000, 5000 and 10000 tenge, printed in 2006, began to be withdrawn from circulation. The withdrawal will be gradual and take exactly one year, during which the above bills will remain legal tender.

Also, many are interested in rumors about a possible change of the monetary unit after the republic joins the Eurasian Economic Union. What currency will replace the tenge in Kazakhstan? Possible options for the name of the EAEU currency: Evraz and Altyn. Pre-negotiations to switch to a single currency within the union are only at an early stage. Most experts call 2025 the most optimistic year to start the transition, but others are inclined to believe that the process will take not one, but 3-5 decades.

KZT against dollar, euro, ruble and other currencies

The currency of Kazakhstan had a lot of falls, which is clearly seen in the history of the exchange rate. At the beginning of May 2016, the following indicators are relevant:

• 1 USD=327 KZT, or for 100 tenge you can get 0.31 US dollars.
• 1 EUR=373 KZT, or for 100 tenge you can get 0.27 euros.
• 1 GBP=478 KZT, or for 100 tenge you can get 0.21 pounds sterling.
• 1 RUB=5 KZT, or for 100 tenge you can get 20 Russian rubles.
• 1 UAH=13 KZT, or for 100 tenge you can get 8 Ukrainian hryvnia.

The specified tenge rate is set by the National Bank, when buying currency in some banks and exchange offices, the rate will differ.