Download International Reserves and Foreign Currency Liquidity

Summary Methodology: International Reserves and Foreign Currency
Liquidity
Kazakhstan
Summary Methodology
International reserves and foreign currency
liquidity
Contact Person(s):
Ms. Aigul Buranbayeva
Balance of Payments Division,
National Bank of Kazakhstan
21, Koktem-3, Almaty, 050040
Phone: 327 2 704647
Fax: 327 2 704642
Email: [email protected]
Revision Date: August 2006
I. Analytical Framework, Concepts, Definitions, and Classifications

Concept: Gross international reserves are external assets that are readily
available to and controlled by the National Bank of Kazakhstan (NBK) for
direct financing of payment imbalances, for indirectly regulating the
magnitude of such imbalances, through intervention in exchange markets
to affect the exchange rate, and/or for other purposes. No other foreign
assets of the NBK is classified as reserve assets than the liquid external
assets, which meets the criteria set in the IMF’s Balance of Payments
Manual, Fifth Edition (BPM5).

Definition: International reserves are liquid external assets of the NBK in
freely convertible foreign currencies, that can be easily traded on the
market. Other foreign currency assets comprise of the assets of the NBK in
limited convertible currencies.

Classification: Instruments included within the definition of reserve assets
are classified into monetary gold, Special Drawing Rights (SDR), the reserve
position with the Fund and holdings of foreign currency (deposits of the
NBK with foreign banks, foreign exchange cash, checks, bills of exchange,
securities, short-term credits granted to non-residents).

Relationship to international guidelines: The content of international
reserves and their classification and calculation are based on IMF
methodology (BPM5). The reserves template data are disseminated
according to the IMF's "International Reserves and Foreign Currency
Liquidity Guidelines for a Data Template".
II. Scope of the data

Institutional coverage: Gross international reserves include only external
assets controlled by the NBK and in any moment might be used for direct
financing the balance of payments deficit. The assets of the National Fund
of the Republic of Kazakhstan (NFRK) is considered as assets of the
government sector managed by the NBK. Therefore the claims of the NBK
on non-residents connected with foreign investment of the NFRK are not
included in the international reserves.

Instrument coverage: All reserve assets held as foreign exchange
deposits, liquid securities, short-term loans, and monetary gold are readily
available. Repayable margin accounts linked to financial derivatives are
included in the gross international reserves.
III. Accounting Conventions

Valuation: Gross international reserves are measured on the balance
sheet data on stocks of claims on nonresident. In accountancy the valuation
is recorded at market prices (monthly adjustments). Monetary gold held by
the NBK is revalued daily using the morning fixing on the London Bullion
Metal Auction (LBMA) as of previous day.

Conversion rates: Reserve assets are converted into a USD equivalent
according the rates equivalent to the rates in international markets on the
respective day.

Frequency of calculation and revaluation: The international reserves
data are calculated and compiled daily. Securities is revalued monthly and
at the moment of transaction also.
IV. Nature of the Basic Data Sources

Data sources: Balance sheets and supporting accounting records of the
NBK.
V. Compilation Practices

Statistical adjustments: No statistical adjustments are made to the data.
VI. Other Aspects