Jusan Analytics team has updated the Dastarkhan Index

Jusan Analytics team calculated the Export Price Index for the main goods of Kazakhstan (XPI JA)

The Export Price Index includes key export goods of Kazakhstan, which are sold at the prices of international commodity exchanges: crude oil, natural gas, copper, uranium, wheat, zinc, silver, and aluminum. The Index is calculated as a geometric weighted average of the prices of 8 goods, considering their share in total exports and a scaling factor. The base value of the Index is 100 at December 2018 prices.

The Export Price Index reflects the change in world quotations of the main commodity groups of Kazakhstan’s exports in the current period in comparison with the baseline. With the help of the Index, it is possible to trace the influence of commodity market conditions on the general terms of trade of the country and, to a certain extent, assess the dynamics of export earnings as a result of changes in world prices (excluding physical export volumes).

Given the high commodity concentration of Kazakhstan’s exports, the Export Price Index excluding crude oil was additionally calculated for analytical purposes. The Index helps to assess the price dynamics of other goods that occupy a less significant share in exports. At the same time, foreign exchange earnings from their sale may affect the volume of foreign currency supply in Kazakhstan.

We note that the Index excluding crude oil is less volatile. This is due to its structure being evenly diversified, which reduces the impact of one product on the entire basket.

Power coefficients reflect the currency structure of the Export Price Index:

Product name	Code	XPI JA(LCO=78)	XPI JA2(LCO=0)
Oil	LCO	78.03%	0.00%
Gas	NG	6.08%	27.69%
Copper	HG	5.59%	25.46%
Uranium	UXX	4.15%	18.90%
Wheat	LWB	2.25%	10.23%
Zinc	MZN	1.47%	6.70%
Silver	SIZ	1.28%	5.83%
Aluminum	MAL	1.14%	5.19%

 

The chosen distribution of shares for the Export Price Index reflects the average structure of the export basket of Kazakhstan for the main goods. A sample set of goods is formed at the level of the FEACN 4 signs and based on the dependence of the export price on stock exchange quotations.

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Interactive chart related to the dynamics of Export Price Index is shown below. We recommend you using the desktop version of the browser or switching to the “PC Version” from the mobile version for comfortable reading. The setting can be found in the mobile browser menu – three dots in the right corner.

 

Jusan Analytics team calculated the Tenge Index (KZTX JA)

The Index is calculated as the geometric weighted average of tenge exchange rates against foreign currencies (dollar, ruble, euro) multiplied by a scaling factor that brings the Index value to 100 on the base date of the index calculation (December 2018). We do not consider the earlier period, as we believe that from 2016 to 2018, exchange rate formation has adapted to new conditions – the floating exchange rate regime.

KZTX JA = 13 481,2*KZTUSD^0.65*KZTRUB^0.25*KZTEUR^0.1

The formed Index reflects the purchasing power of tenge to the main foreign currencies used in trade and transfers. Thus, with the help of the Index, it is possible to judge the tenge strength, and not only concerning a specific currency. Accordingly, the growth of the tenge Index means the strengthening of the tenge against the major currencies, while the decline means the loss of the purchasing power of the domestic currency.

Coefficients reflect the currency structure of the Tenge Index:

• US dollar – 65%;
• Russian ruble – 25%;
• Euro – 10%.

The selected distribution of shares for the Tenge Index reflects the average currency structure:

• Kazakhstan’s trade turnover with the main trading partners,
• currency payments and transfers,
• currency transactions on the exchanging currency market and the cash foreign exchange market.

Even though there is a significant share between China and the European Union in trade, the main currency of payments in trade transactions is the US dollar. The currency structure will be reviewed by us no more than once every 2-3 years.

The Tenge Index can be used to analyze the behavior of the national currency to individual currency pairs and to understand what its dynamics is related: to the tenge strengthening itself or the weakening of a single foreign currency.

A detailed overview of the dynamics of the Tenge Index (KZTX JA), explanation and impact will be published within the Weekly Forex Review.

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Interactive dashboards related to the dynamics of the Tenge Index are shown below. We recommend you using the desktop version of the browser or switching to the “PC Version” from the mobile version for comfortable reading. The setting can be found in the mobile browser menu – three dots in the right corner.

 

The Index allows you to assess the level of personal inflation and purchasing power of residents of Astana and Almaty cities

Below are interactive dashboards related to the dynamics of the Dastarkhan Index, developed and calculated by Jusan Analytics team. We recommend you using the desktop version of the browser or switch to the “PC Version” from the mobile version for comfortable reading. The setting can be found in the mobile browser menu – three dots in the right corner.

Charts show the dynamics of the Index for Astana and Almaty cities. The calculation methodology is described on «Jusan Analytics team has updated the Dastarkhan Index» page.

* value to weight ratio of products

Comparison of prices for products, tenge

Products/strong>	Average price		Maximum price		Minimum price
	Astana	Almaty	Astana	Almaty	Astana	Almaty
Lamb, kg	3 100	4 699	3 720	7 145	2 790	3 200
Horse meat, kg	3 531	4 400	3 999	5 240	3 300	3 960
Beef, kg	5 015	4 424	5 540	5 375	4 490	2 900
Potato, kg	171	246	219	450	95	160
Carrot, kg	114	221	159	350	89	140
Tomatoes, kg	498	842	689	1 400	365	235
Onion, kg	152	213	342	466	85	100
Cucumbers, kg	1 356	1 117	3 663	2 400	329	250
Sunflower oil, liter	1 152	939	1 680	1 360	665	280
1 category eggs, dozen	544	593	874	753	455	440
White wheat flour, kg	388	378	986	573	225	203
Pasteurised milk 3,2-4%, liter	465	527	788	851	270	260
Yeast, packet (100 gr.)	785	1 006	1 380	2 000	400	300
Sanding sugar, kg	525	507	570	590	480	310
Groats of millet, kg	609	519	1 104	920	260	310
Butter, unsalted, packet (180 gr.)	887	1 102	1 880	2 047	305	288
Black tea, bohea, packet (200 gr.)	1 707	1 672	3 002	3 960	765	200