Currency Devaluation May Favour Mining Companies
News: On February 11, the National Bank of Kazakhstan devalued the tenge from KZT155 to KZT185 against the dollar. The devaluation of the national currency, which was aimed at countering a gradual 10% depreciation of the Russian rouble since late 2013, is expected to benefit the country's mining sector in the short term at least. Leila Kulbayeva, a mining analyst at investment bank Visor Capital said: 'In general, we believe the devaluation is a positive phenomenon for the mining sector because mining is labour intensive, while revenue from it is in hard currency,' ( Business New Europe). However, the central bank's move could worsen social tensions, increasing pressure on mining firms to do more to improve labour relations.