Kazakh Central Bank Forms Unit to Guide 10 to 20-Year Investment
Kazakhstan’s central bank created a unit to oversee investments of a 10 to 20-year duration to diversify and increase returns on its holdings.
JSC National Investment Corporation of the National Bank of Kazakhstan will invest reserves and National Oil Fund money in “traditional and alternative assets in international financial markets,” the Almaty-based bank said in an e-mailed statement today. Yeszhan Birtanov was named chief executive officer of the company, according to the statement.
Kazakhstan, the biggest oil producer in central Asia, is seeking to boost returns on its reserves after its 7.4 trillion tenge ($49 billion) National Oil Fund reaped 60 billion tenge in investment profit last year. Assets in the Kazakh National Oil Fund, which is managed by the central bank, and foreign-exchange reserves amounted to $85.5 billion in September.
“The formation of the corporation is a necessary step in the current economic reality,” the central bank said in the statement. “It can be seen as a qualitative modification of the concept and conduct of international assets management. This will increase profitability and promote further diversification of international assets of Kazakhstan.”
-- Editors: Paul Abelsky, Alan Crosby
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