Let's talk about the history of the emergence of the modern currency of Kazakhstan and its name, the current rate of major currencies and possible successors within the Eurasian Economic Union.
Early currencies of present Kazakhstan
The Silk Road passing through the country contributed to the development of monetary circulation, leading many countries to the silver and gold standards. Petty money was made from cheaper metals. In the IV-V centuries, copper concave discs were used, and for settlement with China they minted bronze coins with a hole in the shape of a square.
Over five centuries, the money of Kazakhstan has changed more than once, and by the X-XI century, the main turnover was made of gold and silver dirhams. An alloy of silver with copper was used for minting dirhams. From the 13th century on Turkic coins the image of a lion and the sun, captured by the khans of the Golden Horde, has firmly settled.
The first cities to undertake mass coinage were Taraz and Otrar. They began issuing their own banknotes in 1251, which is one and a half thousand years ahead of many neighbors, including Russia.
The first reforms and new monetary units
The coins issued had value depending on their composition: the coin was minted from copper (felsi), silver dirhams stood higher, and the gold dinars were the most valuable . In 1321, Khan Kebek decided to make changes: coins of silver from 8 grams were renamed to silver dinar (or kebek dinar), and the dirhams became copper. There were 6 dirhams in 1 kebq dinar.
The current name of the currency goes back to the reign of Tamerlane, who introduced tilly, tengi and pools. 1 tilla = 21 tenge, 1 tenge = 4 dirham or 45-60 pools. The word "tenge" itself was used to denote any coins and became the progenitor of the Russian units of "money" and the general designation "money". So the money of Kazakhstan played a role in the formation of monetary units and their names far beyond the borders of the country.
Goodbye ruble! Hello tenge!
After the collapse of the USSR, Kazakhstan continued to use rubles for longer than the rest, slowly introducing its own currency. Since there were no factories in the republic capable of printing banknotes, they were ordered in England. New banknotes traveled by plane to the destination country.
New money was introduced in Kazakhstan on November 15, 1993, and the exchange rate against the Soviet ruble was 1 in 500. This day was the date of honoring the national Kazakh currency. In 2015, tenge turned 22 years old. Unlike other CIS countries, there was no temporary money in the republic: Kazakhstan immediately introduced the national currency, making it easier for the population to switch between monetary units.
It is noteworthy that the full transition to the new currency did not take a year, not a month, but only 6 days! Another interesting point: if the banknotes were printed in England, then the coins were ordered in Germany, so that the current money of Kazakhstan has European roots.
Denominations and coins of the Kazakhstan tenge
Initially, the coin line of the republic’s money consisted of tyi: in 1 tenge - 100 tyi. Over the years of depreciation, tyins went out of circulation, and as of May 2016, coins in denominations of 1, 2, 5, 10, 20, 50 and 100 tenge remained in use. Banknotes issue tenge in denominations of 200, 500, 1000, 2000, 5000 and 10000 tenge.
The design of notes significantly changed in 2006. Then it was decided to print one side horizontally and the other vertically. This is one of the ways the republic shows itself as a bold modern country. These principles also apply to urban development: the most original projects are accepted and implemented. On the obverse side of the banknotes of the 2006 edition is the Baiterek monument (Astana) as a symbol of development. Interestingly, the banknotes of this year’s sample have long been considered the most protected from falsification in the whole world. Each banknote representing the money of Kazakhstan had 18 levels of protection, some of which became an innovation and were later borrowed by other states.
In 2010-2012, updated denominations of 1,000, 2,000, 5,000 and 10,000 tenge were issued. The new design reflected the historical events of recent years: the holding of the Asian Games 2011, the chairmanship of the OSCE, and the anniversary of independence.
Recent innovations
To avoid confusion in the notes of different series of issues, from the 1st day of 2016, banknotes in 2000, 5000 and 10000 tenge, printed in 2006, began to be withdrawn from circulation. The withdrawal will be gradual and will take exactly a year, during which the above bills will remain legal tender.
Many are also interested in rumors about a possible change in the currency after the republic joined the Eurasian Economic Union. What currency will replace tenge in Kazakhstan? Possible options for the name of the EAEU currency unit: evraz and altyn. Preliminary negotiations on the transition to a single currency within the union only at an early stage. Most experts call 2025 the most optimistic year to begin the transition, but others are inclined to believe that the process will take not one, but 3-5 decades.
Tenge exchange rate to dollar, euro, ruble and other currencies
The currency of Kazakhstan had many drops, which is clearly visible in the history of the course. In early May 2016, the following indicators are relevant:
- 1 USD = 327 KZT, or for 100 tenge you can get 0.31 US dollars.
- 1 EUR = 373 KZT, or for 100 tenge you can get 0.27 euros.
- 1 GBP = 478 KZT, or for 100 tenge you can get 0.21 pounds.
- 1 RUB = 5 KZT, or for 100 tenge you can get 20 Russian rubles.
- 1 UAH = 13 KZT, or for 100 tenge you can get 8 Ukrainian hryvnias.
The indicated rate of tenge is set by the National Bank; when buying currency at some banks and exchange points, the rate will be different.