The Kazakh Information Center released on the 2nd of June information stating that the Head of the National Bank of Kairat Kelimbetov refuted the rumor about the possibility of the devaluation of the Kazakh Tenge. He said in response to the journalists’ questions during a press conference on the central communications services that, “The oil prices are now high. The Ruble is strengthening, but even if it reduced to some degree, this does not scare us”. And he said, “I think that we have a solid cash stockpile”.
Kairat also said, “The total reserves in Kazakhstan amounted to 28 billion dollars today, and there are no prerequisites for devaluation”. “Oil occupies about 60% of the total exports of Kazakhstan, which is the main source of state revenue in foreign currency. The decreased cost of oil has more than tripled in the past six months,” as stated in the press release by the National Bank.
The first time that the currency was devaluated in Kazakhstan was in February 4, 2009, immediately after the start of the global economic crisis in 2008, when the Kazakh currency weakened against the U.S. dollar by 23.8%. The second time was on the 11th of February 2014, where the currency had depreciated by about 20%.
This monetary policy system adopted by Nazarbayev does not lead the country’s economy towards the path of growth and prosperity for several reasons:
First: the Tenge (Kazakh currency) is linked to the U.S. dollar, and this means that the Tenge will always be dependent on the dollar; the lowest frequency in the dollar exchange rate will directly affect the Tenge.
Secondly: the Tenge depends on energy prices, such as oil, which are priced in U.S. dollars, and this price is prone to disparity and volatility.
Thirdly: and most importantly, that the country is ruled by a criminal group headed by President Nursultan Nazarbayev, who is ruling the country on the basis of man-made laws, so they violate everything for the sake of their personal interests, throwing the interest of the county out the window without scruples nor deterrents.
The extreme poverty suffered by the people of Kazakhstan, as well as the people of the world is due to the capitalist economic system applied on them. Kazakhstan is rich in natural resources, but the regime of Nazarbayev in collusion with both Russia and the Western countries, is selling the wealth of Kazakhstan and resources to them, and stores gold resources with them.
The problem of the Kazakh currency depreciation is only solved by the system of Islam, which will replace the current regime in Kazakhstan, that is because the Islamic economic system is distinct from the other economic systems. The currency in the Islamic economic system has a cover powered by reserves of gold and silver, making it independent of the exchange rates in other countries. This, in turn, gives the countries independence from the economic policies of other countries
The Islamic economic system is based on justice, equity between people and solving their problems because it is a system from the Creator, so gas, oil and other natural resources in Islam are considered public property, because the Messenger of Allah صلى الله عليه وسلم said:
«الناس شركاء في ثلاث الماء والكلأ والنار»
“People are partners in three things: water, pasture and fire” (Abu Dawud).
So it is Haraam to sell public property resources and store their profits in foreign banks. It is also prohibited to sell it to the Kuffar who declare their hostility to Islam and Muslims by insulting the Prophet صلى الله عليه وسلم and desecration of the Quran.
Oh Muslims!
The currency’s rise and fall and all the crises of the current economy, which led to the horrors, losses and destruction to the people is a by-product of the man-made capitalist system, and we in Hizb ut Tahrir realize that there is no escape for the people of these crises and calamities, except through the system of Khilafah, so we invite you to work with us diligently in order to return it with the utmost energy and speed.
The Central Media Office of Hizb ut Tahrir
Friday, 15th Sha’ban 1435 AH
13/06/2014 CE
Issue No: 1435 AH /044