Devaluation in Kazakhstan: History, Causes, Consequences

M. Zholamanova , M. Arzayeva R. Doszhan , A. Turlybekova A. Kukiev
European Research Studies Journal, Volume XXI, Issue 4, 831-842, 2018
DOI: 10.35808/ersj/1250

Abstract:

The purpose of this research is to identify the concept of “devaluation”, to trace its history and to summarize the causes and the consequences of this phenomenon in the history of Kazakhstan. The concept of "devaluation" first appeared in European countries during the Golden Standard (a system in which the role of the equivalent of monetary units is played by a standardized amount of gold), and meant a decrease in the gold content in a unit of currency. After the abolition of the gold standard, the interpretation of this concept also changed. Now, devaluation is the process of reducing the basic price of the national currency (depreciation) against the currencies of other countries. As currencies, relative to which the comparison is made, choose a hard currency. That is, the one that is freely convertible (for it there are no restrictions on currency transactions) and has a stable rate.


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