Yesterday I posted on the news that there was a new addition to the world of floating currencies:
- Kazakhstan's introduced a free float for the tenge
So, hows that working out?
- Thursday .... the tenge promptly lost 25 percent of its value ... Emerging nations that boomed while commodity prices were high and failed to convert their windfall into a lasting competitive advantage all face a rough patch. The $1 trillion capital outflow from them over the past 13 months is no speculative accident.
Bad news? Depends on your perspective. Kazakhstan exports just got a whole lot cheaper on the global stage.