On January 5, 2025, President Kassym-Jomart Tokayev of Kazakhstan publicly criticized the performance of economic affairs officials, labeling it as underwhelming. This criticism comes in the context of significant economic challenges faced by the country, including a notable depreciation of the national currency, the tenge, which reached 500 against the U.S. dollar in late 2024. Tokayev emphasized the need for specialists who are well-versed in regional economic situations to better navigate these challenges [dcc10cc4].
In November 2024, the tenge experienced a 5% drop, prompting the government to abandon its previous strategy of maintaining an artificial exchange rate [dcc10cc4]. During a meeting with Prime Minister Olzhas Bektenov on December 17, 2024, Tokayev discussed these pressing economic issues and the necessity for a more robust approach to economic management [dcc10cc4]. Experts have projected that the exchange rate for the tenge could fluctuate between 600 and 650 against the dollar in 2025, indicating ongoing volatility in the currency market [dcc10cc4].
Meanwhile, across the border in Russia, President Vladimir Putin is facing his own set of economic troubles, with the ruble depreciating significantly and military expenditures straining the national budget. The ruble reached a low of 114 rubles per U.S. dollar in November 2024, and the Central Bank has maintained high interest rates at 21% to combat inflation, which is estimated between 8% and 8.5% [1b1ac894]. This economic instability has led to rising criticism of the government and concerns about the sustainability of Putin's leadership amid the ongoing conflict in Ukraine [d7750744].
As both Kazakhstan and Russia navigate these economic challenges, the performance of their respective leaders and economic officials will be closely scrutinized by both domestic and international observers, highlighting the interconnectedness of their economic fates in the face of regional instability [c90dc89c][2ebad97b].