Non-resident investments in government bonds directly depend on the level of trust in the economic policy being pursued and government bodies, said Deputy Chairman of the Agency for Regulation and Development of the Financial Market of Kazakhstan, Nurzhan Tursunkhanov, at a seminar on capital markets held within the framework of the 59th Annual Meeting of the ADB Board of Governors, Report informs.
According to him, the level of capital market development is an indicator of the maturity of the entire financial system.
“The dominance of the banking sector typically indicates an early stage of development. A full-fledged capital market is, first and foremost, a matter of trust. Five years ago, we hoped to attract at least $1–2 billion in non-resident investments in Kazakhstan’s government bonds. Already last year, this figure reached $2 billion in investments in securities denominated in the national currency,” he noted.
Tursunkhanov emphasized that this result was made possible thanks to the predictable policy of the central bank and the high level of trust in the regulator.
“Moreover, over the past six months, the volume of non-resident investments has effectively doubled – from $2 billion to nearly $5 billion. This clearly demonstrates that a strong and reliable regulator, whose actions are understandable to the market, is one of the key factors in building an effectively functioning capital market,” he added.