An Empirical Assessment of the Economic Model of the Exchange Rate

Abstract

The article analyzes the various factors influencing the formation of national currency in Kazakhstan from Q1 2004 to Q4 2016. This helps to identify the most significant factors determining the equilibrium rate of tenge. These include the current dynamics of the exchange rate, the size of the debt and the rate of its growth, the coefficient of the money multiplier. Other factors, such as the growth rate of the economy and the money supply, net inflow of financial assets and a current account, did not have a significant impact on the tenge.