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Ceding $18 Billion Gets Kazakh Central Bank What Money Can't Buy

  • Kazakh central bank set to lose control over pension fund
  • Nazarbayev backs new governor's shift from propping up tenge
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Losing control of an $18 billion pension fund may give the Kazakh central bank the independence it needs to stick with a shift to inflation targeting that’s upended the nation’s currency this year.

The plan, announced by President Nursultan Nazarbayev in a speech to the nation on Monday, will also strip the central bank of its authority over a problem-loan fund and “other financial institutions.” That’s needed to “eliminate the National Bank’s institutional defects,” Nazarbayev said, calling for control over retirement savings to be transferred to private Kazakh or foreign companies next year.