SDDS_ International Reserves and Foreign Currency Liquidity by hcj

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									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: balans@nationalbank.kz Revision Date: August 2006

I. Analytical Framework, Concepts, Definitions, and Classifications

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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).
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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

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Liquidity Guidelines for a Data Template".

II. Scope of the data
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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.

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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
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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.
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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.

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IV. Nature of the Basic Data Sources
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Data sources: Balance sheets and supporting accounting records of the NBK.

V. Compilation Practices
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Statistical adjustments: No statistical adjustments are made to the data.

VI. Other Aspects


								
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