Currency devaluation of the tenge

The Kazak national bank has decided this week to devaluate the tenge against the USD, this because also the Russian currency is devaluating at the moment and to avoid having a worsening competitive position they need to follow.

This all sounds very nice you would think for an expat living in Atyrau as you can buy more for the same euro…but no such luck:)

Because the majority of the items are imported here, the prices go up in the same way as the devaluation of the tenge, the best example was that even our fitness lessons, or a massage in the beauty salon (all local driven services) have increased their prices from one day to another with 25%. Its funny to see that the devaluation of a currency is used to increase local prices. this definately means that we have landed in an environment were the prices start to be completely driven by the expats. maybe I am seeing it wrong, but if this is how a city reacts after devaluation of a currency, the only thing missing is an equal increase in salary for all the people from Atyrau, and than all is left is a devaluated currency….and not the benifits of it.

In the meanwhile, I will wonder what they will think of next…

have a nic day…