The banknotes and coins of Kazakhstan - today and in the · PDF fileThe banknotes and coins of Kazakhstan - today and in the past (Reference material) How it was in the beginning.

The banknotes and coins of Kazakhstan - today and in the past (Reference material)

How it was in the beginning. Usually when there is a conversation about ancient coins people intuitively expect to see

something round and sparkling. But in reality ancient coins look like irregular shaped turned green pieces of copper.

Otrar is an ancient city where the whole history of money which was used by people of Kazakhstan is reflected like in the mirror of time. This money was very different. And at that time the currency reforms took place more often than now.

Nowadays you can find Chinese yuan only in currency exchange offices of Almaty. But in regional centers yuan is not needed at all. And it is fact that the first coins which were used in Kazakhstan were Chinese ones. The archeologists have found coins which are called "ushu" in Mardan tomb of Otrar oasis.

They are related to the turn of AD. Thereby people of South Kazakhstan began using money at the time of Tiberius' governing in Rome and Jesus Christ's testimony in Palestine. There was great state of Kangyui flourishing at the territory of South Kazakhstan. The state was great enough for Chinese emperors of Han dynasty to take it in consideration. Trade on Great Silk Way was flourishing also. That's why money circulation was supplied and implemented by China.

Stamping of "Ushu" coins or as it is also called "Ushutsan" – was continuing in China for a period of several dynasties and ended only in VI century AD. After that there in cities of South Kazakhstan started to appear new kind of Chinese coins such as "Kaiyuan" and "Tunbao", we can notice that the name of that coins sound similar with name of contemporary Chinese currency. And it was VII century when Chinese money monopoly was undermined by sogdians.

Sogdians used to be very enterprising people, whose origin was from the east of Iran, that's why they conducted their trade along the whole Great Silk Way. Sogdians were the people who presented the major part of population in cities of Kazakhstan, which were dependent to Turkic Khagans. Also it were sogdians who kept numerous karavansarys on the way from China to Iran.

Sogdians started to stamp their own coins just copying Chinese ones. Today we would say that such copying was some kind of piracy and breach of copyright.

Then scriptures in sogdian language and Bokhara symbols in the image of knife began to appear on those coins.

Great amount of Chinese and sogdian coins have been found during the excavations at the marketplace of Otrar city. These coins were dated to the VII-VIII centuries. As we know at that time cities of Europe were on the decline. But on the contrary cities and trade at the middle Syr Darya were flourishing. These cities began to stamp their own bronze coins by following the example of sogdians' coins stamping model. But the Chinese origin of coins hadn't been forgotten in that region and in memory of it there were square holes in the middle of coins.

Denga

VII century. Bronze currency of Turgesh state

Ancient Settlement of Altyn-tobe

(Oasis of Otrar)

Such money was in circulation at the region of Kazakhstan for two centuries.

Turks were the governors of the cities and they used to depict fierce lions on the one side and their own tamga on another one of their coins. Such coins are typical examples of currency at the territory of Semirechye and also in Otrar and Chach (Tashkent) oases.

Ancient Turkic Chach coins are usually divided in two main groups: 1) without Turkic titles (they picked out by their iconographical features of decoration); (fig. 1) 2) with Turkic titles transferred by sogdians' scriptures (fig 2).

From Turgeshs to Mongols As a matter of fact Turkic states also began to stamp their own money very early. And of course

the major role in stamping had the Khaganate of Turgeshs. It was the Turgeshs who recklessly fought against Arabs and Chinese and the same ones who first among Turks began to turn Mohammedan. And they did it voluntarily by missionaries of Islam, because Arabs failed in inculcating new religion in the region of Kazakhstan by fire and sword.

There were four types of coins which Turgesh Khans used to stamp. This money was in circulation on the great territory from Semirechye to Sogda (which is Tajikistan nowadays). These coins were stamped in Taraz city and in Suyab city which was the residence of Khagan. On the one side of coin there was Khan's tamga and on another one there was a scripture – "the denga of heavenly Turgesh-Khakan".

WESTERN SOGDA

EASTERN SOGDA

SOUTHERN SOGDA

BOKHARA KHUDATY At the same time there were Turkic people named Tukhusi who lived in the valley of Chu and

were submitted to Turgeshs. They also stamped their own coins but this money was in use only in the valley of Chu.

KARAKHANIDS' FELSES

SAMANIDS' FELSES

С

In the beginning of second part of VII century Turgeshs have been submitted by another Turkic

tribe of Karluks. And, by the way, most genealogies of Kazakh people such as shezhire are related to this epoch. For example it was Karluk's khaganate where legendary Baydybek-ata, lived. It is he who considered to be progenitor of Senior Zhuz.

Karluks have established their political domination in the southern part of the country. But they didn't stamp their own coins.

However there was not only domestic currency in the region of our land but also foreign one. The name of it was Felses. This money was brought to the region by Arabs, who started their invasion to Middle Asia in the beginning of VIII century

Shortly after that Samanids and Takhirids who were the southern neighbors of Karluks turned

Mohammedan. They started to stamp "world money" of that time, which was silver and called Dirkhems.

In IX-XI centuries these Dirkhems turned to be the main currency. People called them "Black Dirkhems" for the reason of copper which was too much in the coins. The outer face of the coin was decorated with the governor's bust including scriptures and accoutrements of power, and on the reverse side of the coin there was sacrificial altar with fire and guard.

Dirkhems of Termez

In the middle of the outer face of the coin there is stylized image of bow with arrow. In four corners of it there are Sultan's accoutrements of power- "Sultan the Greatest, the height of peace and faith. In the upper part of the coin there is an unintelligible word and there is an ornament below. There is also circular inscription and it is partially effaced – "This Dirkhem was stamped in Termez…" On the reverse side of the coin there is square cartouche formed by two squares named kalima at the four sides of cartouche there are Pakab and epithet. The only extant word is Muzafari (?) http://archeologia.narod.ru

Felse

The middle of XIII century. Ulus of Chagatai

Silver An ancient settlement of Otrar

Adding copper into the silver of a coin decreases its purchasing power. And we can see that the government was in economical depression at that time. But on the other hand when the economic state was flourishing coins consisted of six kinds of metal. And sometimes silver Dirkhems contained gold.

As soon as Karakhanids had established their power in XI century in the region of South

Kazakhstan the flourishing period of region took place there. There wasn't any change in currency during the first part of this period. But "Black Dirkhems" have started to disappear in the middle of the next century. New dynasty came into power and started to stamp its own coins, which was made of bronze and copper. But to tell the truth it was Black Dirkhem that established a record. They have been stamped and used for 400 hundred years. And it is the longest period of coins circulation in our land.

There were functioning mint places in Barab (Farab of Otrar), Ispidjab and Taraz during the period of these coins circulation.

Felse

XV century. Timur's and Timurids' State

Copper An ancient settlement of Otrar

There was functioning a complicated specific system in the state of Karakhanids which was

typical for classical feudal states of Europe. The matter is that governors were submitted one to another and all wanted to stamp their own coins. In the result of it the distribution of counterfeit money took place. Archeologists have found hidden hoards of counterfeit money. And probably the owners of these coins didn't know about it.

Fake Dirkhem of Karakhanids http://www.rasmircoins.ucoz.ru/forum/

Meanwhile "silver crisis" have enveloped the whole Middle Asia and South Kazakhstan in XI

century. And it lasted for a period of 250 years. Silver mines at Talas and Akhangaran head rivers began to peter. Great amount of coins departed to Europe where an intensive urban expansion started at that time.

However the cities of the South Kazakhstan region were continuing their intensive growing. For example total area of Shymkent at that time came up to 30 hectares. Apart from copper coins the circulation of gold started there. But it wasn't coins made of gold. But just pieces of this metal which archeologist find in plenty of hoards. The result of crisis was that counterfeit money was recognized and used as legal. State mint places started to stamp copper coins plating them with silver and claimed it was pure silver money. At that time there were functioning at least five mint places at the territory of Kazakhstan.

Real product of counterfeiter of that time, it is even possible to see silver plating on

the coin http://www.rasmircoins.ucoz.ru/forum/

Shortly before Mongols came to the territory of South Kazakhstan it had been conquered by Khorezmshakh Muhammed. It was he who started to stamp his own Khorezm coins in Otrar

From Mongols to Kazakh Khanate Sometimes archeology makes history more exact. It says that though Mongolian invasion was

ruinous for the region of our land yet it wasn't so fatal is it is shown by chroniclers. The cities like Sauran which surrendered to Mongols weren't ruined. And even Otrar was restored very soon. And after the default of the second part of XIII century economical upturn soon took place. It means that the need of great deal of money was the result of this upturn.

DIRKHAM (The hoard of silver things and

coins of XIII century which have been found in Otrar.)

http://www.zeno.ru/showgallery

Kazakhstan was a part of Chagataids' state of Mongols where the stamping of silver coins was

established very soon. And this money was of great quality. In Otrar and in Khodjent golden dinars were produced. But for the reason of its high price gold wasn't circulated in single pieces. But coins used to be broken to pieces and dug into the ground as hoard. People did it in spite of Kurultai which Mengu khan had held in 1251. During this Kurultai a decree about tax collection of golden coins was issued.

http://horde.charm.ru/

The excavations of Otrar city were the largest scale digging in USSR after the diggings of Novgorod for a period of 25 years. These excavations proved the thing that there were golden dinars, copper based and silver plated Dirkhems and copper Felses circulated in the city together. It is usually easy to find copper Felses in the region of the city today.

Sometimes there was the name of Chingiskhan on the coins. It was there for assurance of authenticity of this money. People of Otrar city and Khodjent had confidence in copper based and silver plated Dirkhems and that's why this money was in circulation there for a very long period of time. Stamping of a great amount of copper, golden and silver plated Dirkhems and copper Felses in the region of Otrar city is the evidence of flourishing of money circulation at the territory of South Kazakhstan.

Such cities of South Kazakhstan like Taraz, Otrar and Kendje were actually in the lead of producing silver money in the whole Chagatads' empire. The coins which were produced in these three centers were practically identical.

In spite of all wide spread prejudices the Mongols pursued their economic policy very wisely. It was Middle Asia that was of interest as a source of great and fixed incomes to the Mongols. There was special deputy who ruled the economy and delivered money to the Mongols.

Mongols didn't usually interfere in the business of stamping money. At first the whole region was under the administration of the merchant Makhmud Yalavach and then his son Masud-bek who outlived many khans and implemented great money reform had taken the lead.

It was he who stimulated the business of mint places and established unitary weight and hallmark for the silver coins. Thereby the empire got its free circulated silver coins and state standard of its weight. But there were copper money flourishing in retail trade which were of the same weight and size with the silver ones. It was the Masud-bek's money reform that put an end to the "silver crisis" and caused the continuing and stable economic growth of the region.

There is some mystery in the thing of the Mongols' money. There are no names of Mongol khans on their coins but there is the name of Baghdad's caliph Nasir who was dethroned and killed by the Khulagids in 1258. The Khulagids were the Mongols too. And, by the way, the same name was stamped on the coins of Djuchids in the Golden Horde which were in active circulation at the western part of Kazakhstan.

Historians suppose that they just honored the tradition this way. And in Golden Horde where Berke khan had pursued the policy of islamization it was also the index of loyalty to the new religion.

As soon as many Mongols' states had fallen into decay, money stamping business started to be on the decline too. The money stamping process stopped in Otrar in the period of XIV century when major portion of Kazakhstan had been the part of Ak-orda. But when in the end of the century Timur had come to this region economy became more brisk.

Copper coins stamping started again in Otrar. But for trade there were silver "Tanga" too, which were produced at the territory of the south part of contemporary Uzbekistan, substantially in Bokhara. (You can see the collection of ancient coins such as Tanga in application 1).

That's how the name of contemporary Kazakh currency at first time has appeared at the territory of land. But at that time nobody knew about "Tiyns". Tanga could be divided to four parts and one fourth part of Tanga called "Miri". There were functioning more that thirty mint places at the territory of Timur’s States.

At that time there was a famous scientist and statesman Ulugbek who was the initiator of another currency reform. In 1428 old copper money was changed to new ones and after that all mint places were closed. And over a period of sixty years there was single currency in the empire. And if there was lack of money, it was stamped only in Bokhara.

Reforms and hoards

After the collapse of Timurids' States the south part of Kazakhstan became a field of long strife between Kazakh khans and Maverannakhr's governors. There was a competition for rich cities which were situated in the middle course of the river Syr Darya. The end of the strife finished in the beginning of XIX century with decay of these cities and by connection of the land to Kokand's khanate. And how many varieties of money there were at that time.

Firstly Sheybanids conquered the land and extended their power up to Afghanistan and Iran. In the year 1507 Mukhammad Sheybani khan captured Gerat and immediately in the cathedral

mosque there was proclaimed a new decree about new currency reform which promised unchanging system of money stamping and circulation of silver coins to the all who was interested in trade. New Tanga was assigned as basis of silver coins circulation. It was decorated with governor's stamping which is the name and the title of Mukhammad Sheibani khan.

The date of accomplishment of reform is the year 1508 when new Tanga, identical by their weight, inscriptions content and whole appearance, had been released in many cities and regions of spacious Sheibanids' empire. The cities were – Samarkand, Bokhara, Merva, Neese, Serakhs, Gerat, Meshkhed, Nishapur, Kain, Sebzevar. Equal silver coins had the same status and circulation throughout the state. An inflation process was free; it means that any private individual could order money stamping using his own metal for a certain payment to the state treasury. The money stamping was a source of income for the state treasury.

But certainly it doesn't mean that enormous incomes from stamping and circulation of silver money flew to the treasury of central authorities. The head of dynasty was just the first among equal at that time. Big landowners bestowed him ostentatious honors, glorified his name and titles of statesmen by the inscriptions on the coins but they took all incomes of money stamping. Regular and plentiful release of silver money has been taken in four the greatest lands which are – Bokhara, Samarkand, Balkh and Tashkent. Out of the last one they came to the territory of Kazakhstan and circulated freely in Kazakh khanate. Though the owners of this money used to be political enemies of Sheybanids.

Very important event of that time was the regular release of golden coins which started in XVIII century by Djanids who were the descendants of Astrakhan's khans. One golden coin "Ashrafi" cost about 50-80 silver coins (depends on theirs hallmark and rate). All of them also circulated throughout South Kazakhstan and penetrated to the north. From the middle part of XVII century there appeared Russian money which generally were copper coins.

After the unconstrained connection of Kazakhstan to Russia (1731-1798) there appeared Russian coins, Kokand's and Tashkent's khans' coins in money circulation of the region. In the XIX century all trade operations were conducted with Russian money. And money circulation in Kazakhstan turned to be part of money circulation of Russia.

The system of golden monometallism with circulation of golden coins was brought into

service by the currency reform of 1895-1897 in pre-revolutionary Kazakhstan. There were golden, silver and copper coins in circulation. But the main type of money was the bank-notes of Russian State Bank which were based by gold on 92 per cent.

Within the period of provisional government of 1917 there was new money in circulation which was called "Cherenki". Also there were various substitutes like current liabilities of state treasury or loan coupons. As a small change there were various checks, bonnes, marks and other money substitutions. At that time the process of currency system breakup started, which strengthened after the October Revolution.

In the year of 1919 there were released first soviet state bank notes and then bank notes of RSFSR which were called sovznaks. In a period of civil war and foreign intervention money were printed by interventionists, foreign and White Guard administration. All this money devalued soon and in result of it money were ousted from circulation and natural economy took place there. Because of currency reform new money mode of payment began to be reestablished.

In the October of 1921 The State Bank of RSFSR there was organized with the institutions in soviet Republics which immediately began to be single emission center of the country. Because of different reasons there were taken four currency reforms with denomination for the period from 1922 to 1961 (the year 1922 - 1:10000, the year 1923 - 1:100, the year 1947 - 1:10, the year1961 - 1:10). Also design of coins and bank notes was changed.

In November 15, 1993 – the national currency of Kazakhstan – tenge was released in circulation.

In November 15, 2006 – banknotes of new design had been released in circulation. TENGE – IS THE NATIONAL SYMBOL OF THE REPUBLIC OF KAZAKHSTAN As well as anthem, flag and National Emblem national currency is also kind of state

symbol. There is an inscription in the book of special guests of bank note factory which was made by the President of Kazakhstan Nursultan Nazarbaev in the day of opening the factory in 06.19. 1995. It says – tenge is the manifestation of economical independence of our country first appeared in our capital and must serve good to our people and future descendants.

Sauk Takezhanow was the godfather of national currency who was a chairman of Planning and Budgetary Commission of Supreme Soviet of Republic of Kazakhstan. It was he who offered – tenge as the new name of currency. And this name has been chosen in closed discussion among the members of Supreme Soviet and Republic's administration.

Let us remind you how it was in the beginning. In the beginning of nineties former Soviet and now Kazakh people who got accustomed to slow

and almost unnoticeable growth of price for goods now were disturbed and confused by its increased dynamic. The rate of inflation in 1992 was 250 per cents. People do not like to remember this but it is also our history. And probably some it would be useful for extra ardent fighters to look through it again sometimes. In July 1993 Russia infringed an agreement and Russia released new national currency having notifying Kazakhstan 3 days before that event. Prices went up with a leap. Money of people in savings accounts started to devalue very soon. Soviet banknotes of old standard flew to Kazakhstan. Goods and commodity products were rapidly disappearing from the shops.

The day before new currency reform was taken, the Head of the Country made a speech explaining the aims of it and necessity of it. This statement reassured the people. The order and conditions of change were discussed everywhere. The beginning of change started at 8 o'clock a.m. in November 15/1993 and finished at 20 o'clock p.m. in November 20/1993.

But there were plenty of procedure nuances of releasing of national currency. Such as delivery to the place of giving out cash to the people, or establishing a period of changing soviet roubles to new currency, or establishing a limit of change for a person or an organization, making new currency gold based. In 1993 the changing rate was 500 roubles to one tenge.

First samples of tenge were of British origin as the contracts for manufacture of banknotes has been signed with the largest English company. For the short haul the Republic has been provided with cash money. Almost simultaneously with the introduction of banknotes, Ulba metal plant in Ust-Kamenogorsk city has begun the preparation on release of the first Kazakhstan coins. In order the country could provide itself with paper money, it has been decided to create a banknote factory in Almaty. This decision has been made in May, 1992 and fixed in the Decree of the President of the Republic of Kazakhstan “On creation of printing factory of the National State bank of the Republic of Kazakhstan”. Regional State Enterprise “Kazakhstan Mint” has received a certificate on registration in November, 1998.

Initially tiyns – hundredth parts tenge, were made in paper form, coins made of brass with denominational value 2, 5, 10 and 50 tiyns have been manufactured later.

But their century has appeared to be short. Being not introduced in circulation properly, they

had been depreciated and had been withdrawn from cash-flow cycle. In order to create seven banknotes, a team of artists-designers under the management of T.

Suleimenov has been created. This team included M.K. Alin, A. Duzelkhanov. Unusual and at the same time rather responsible work has devolved on their shoulders. Design of banknotes should be both aesthetic from the point of view of artistic design and decor, and practical enough from the point of view of their further mass production, i.e. polygraphic printing. First of all, it was necessary to solve as a matter of principle the color and appearance of banknotes from the point of view of the historical concept. This concept was based on the general principles of banknotes and literary heritage of people. There were a lot of variants– to place images of historic figures and personalities on the banknotes; or to reflect the major events of antiquity which had taken place in the territory of the modern Kazakhstan; or the plots of national legends, fairy tales, eposes; or natural landscapes of boundless steppes, beautiful mountains and variety of animal and vegetation world. The land rich in traditions, heroes, nature and minerals shall be immortalized in such as it could seem daily, and at the same time unique attributes of the new country. From huge quantity of various material, references, in the course disputes and substantiation there has been made a decision to place on the obverse side of banknotes the image of the historic figures, most brightly reflecting the cultural heritage of Kazakhstan. The reverse side of banknotes depicts natural and architectural elements, characteristic for the country.

1 tenge

The basic image on obverse side – a portrait of the philosopher, a scientist and thinker Al-Farabi who lived at the turn of 9-10 centuries in Otrar in the south of Kazakhstan. Al-Farabi is an outstanding

representative of the eastern branch of school of thought founded by Aristotle, which was subsequently inherited by the Arabian cultures. He wrote more than 100 treatises of which only about 32 was kept up to the present days. Geometrical designs and formulas of this scientist are presented on the reverse side of the banknote.

3 tenge

Suyunbai Aronuly is one of the brightest representatives of democratic trend in poetry and singing art who is known for his talent and capacity to improvisation. Being akin, Suyunbai reflected in his poems heroic struggle of Kazakh people against conquerors, described traditions and moral foundations of people, convicted social contradictions and negative phenomena of the feudal system. Suyunbai got his glory after his participation in aityses, his performances were very emotional and expressive examples of phylologic culture. The reverse side of the banknote has the image of the Zailiyskiy Alatau Mountains.

5 tenge

Great composer Kurmangazy Sagyrbajuly was a known performing musician of instrumental music who created new trend of compositions for dombra – kyui. All his life he devoted to struggle against social injustice and suppression, tyranny and despotism of governors, for what he was exposed to persecutions from the side of authorities for which freedom-loving ideas of the composer, his rich and original musical language brought many inconveniences. The reverse side of the banknote represents the image of mausoleums complex.

10 tenge

Chokan Valikhanov is an outstanding scientist, enlightener and democrat, researcher of history and culture of Kazakhstan and Central Asia. Formation of outlook of this great son of Kazakh people had been influenced by the Russian writer - M. Dostoevsky and by the traveler-geographer P.P. Simenov-Tyanshanskyi. His research works created after his visits of Kashgaria, Semirechye, Kirghizia and East Turkestan, placed him in one line with the most known discoverers and travelers from Europe and Asia. Having lived a short life, he was like a bright meteor in the historical horizon of Kazakhstan. A landscape with the sight to Ok-Zhetpes mountain is shown on the reverse side of the banknote.

20 tenge

Abai (Ibragim) Kunanbaev was the great poet and thinker of Kazakh people, the founder of the Kazakh literary language. His literature works represent an absolutely new stage in the development of art, and sociopolitical and philosophical thinking of the society at that time.

Having carefully studied the cultural state of the native people and great works of Russian, European and East titans of thought and poetry, he considerably expanded the horizons of Kazakh literature which received such masterpieces as translations into Kazakh language of works of Pushkin, Goethe and other. A picture of a hunter with the hawk by motives of Abai works is placed on the reverses side of the banknote.

50 tenge

Prevailing colors of obverse side and reverse side of the banknote are light brown. From the right side of the banknote there is a portrait of Abulkhair Khan and vertically it is possible to find his name and years of his life printed using light brown paint. In the bottom corner from the left side and from above to the right side there is a designation of the digital denominational value of the banknote "50". On the left side of the banknote it is possible to find a watermark with portrait of Abulkhair Khan. Reverse side of the banknote is brown. Rock drawings of Mangistau representing ancient arts of Kazakhstan are placed in the middle.

Having defined a historical line of personalities, whose portraits will be depicted on the first

Kazakhstan banknotes, artists have faced with the second difficulty – necessity to reproduce their appearance most precisely. The difficulty consisted in the fact that there were no any pictures or images of the majority of these figures. For example, nobody knows the actual appearance of Al-Farabi. In due time his portrait has been canonized by the Academy of Sciences of the Soviet Union, i.e. has been accepted as the standard. However it has taken much efforts and considerable work to find his image in works of the scientists stored in archives. The portrait of Abulhair Khan has been found in works of the English traveler - Atkinson, and the portrait of Ablay Khan has been taken from the Russian sources. The image of Suyunbay has been written off from the works of A.Kasteev - the founder of painting in Kazakhstan.

After issue of the first succession of tenge, which has signalized the validity of independence of the young country, there appeared a necessity of introduction of banknotes with higher denominational value. Thus there appeared a family of new banknotes interrelated with one another by uniform idea, design and way of execution. Being manufactured in uniform style, there were issued banknotes with denomination value of 200, 500, 1000, 2000, 5000 and 10000 tenge.

Strict color scale, further increase of protection degrees, introduction of new technical approaches provide evidences on the growth of professionalism of the Kazakhstan artists-designers. New technologies in the field of industrial production of monetary denominations – machine-readable elements, multiscale numbering, watermark supplemented with electrotype – this is not the full list of distinctive features of this banknotes.

Fractional coins of money circulation with denominational values 1; 5; 10; 20 tenge issued in

1993 (in the Figure below they are placed to the left) have been replaced by coins with denominational values 1,5,10,20,50 tenge issued in 1997 (in the Figure below they are placed to the right).

1 tenge

3 tenge

5 tenge

10 tenge

20 tenge

50 tenge

Development of polygraphic and computer technologies and systematic work of the National

Bank of Kazakhstan on introduction of new protective and machine-readable elements. It is necessary to note that, under recommendations of the Interpol, as one of the forms of preventive maintenance of coinage offence it shall be preferably to make changes in the appearance of bank notes on a regular basis and to update the level of their security every five - seven years, as the long-term use of design and protection of bank notes allows to improve the quality of fakes by the forgers of bank notes.

From the beginning of 2006 only the branches of the National bank and only for eight months of the year had revealed 86 facts of coinage offence to the total amount of 284,4 thousand tenge. Law enforcement bodies also found out counterfeit monetary notes in great volumes which fact has been highlighted in mass media.

There also are such concepts as uniform, integral line of the national currency, common concept and design of the currency which incorporate the concepts of both art, and technological character. Former banknotes belonged to different stages of economic development of the country. They were created and issued during various periods, with different hardware and with allowance for those technologies which existed at that moment. But know-how and technologies vary like the wind and in order to keep up the pace (and the main thing to not enable counterfeiters to punch a gap in protection of the national currency), for convenience of recognition of denomination of each value at calculations and not to admit any possibility to confuse this or that denominational value the National Bank was performing replacement of separate denominational values within many years.

It has developed historically, that former banknotes have been executed with identical basic images and had identical sizes. At current replacements of banknotes the National Bank has applied separate new means of protection and tested modernized printing technologies. For example, banknotes of “200 tenge” and “500 tenge” were modernized. All this has resulted in variety of the banknote succession.

Having built the uniform concept of a series, there appeared a necessity of full replacement of the currency. During the existence of the national currency there were already generated both aesthetic and technical, and mental requirements, that has allowed to realize the replacement of banknotes considering the experience of tenge circulation and world-based tendencies.

Each country tries to make its banknotes unlike any others. These attempts are caused by both aspiration to emphasize the country’s individuality, independence, and for prevention of possible fraudulent actions if the banknotes of different national currencies will be similar to one other. New design reflects the changes which have happened in Kazakhstan for the last years and unites the ties of rich cultural history of Kazakhstan with more modern and up-to-date elements of design. For

example, a monument Astana-Baiterek is depicted on banknotes, which represents a place of interest of new capital - Astana. The obverse side also includes fragments of notes of the national anthem, as well as the national flag and coat or arms. The open palm of a hand on the banknotes, a rock drawing of the Bronze Age symbolizes friendliness, openness and good will.

The reverse side of the banknotes depicts the contours of a map of Kazakhstan with images of various landscapes and architectural constructions of the new capital - Astana and other cities. For example, on a banknote of 10 000 tenge value it is possible to see the President’s residence, while the rock drawings of animals found at excavations are also used in design of banknotes.

On the other hand, for perpetuation of the memory of outstanding personalities of the Kazakh history and culture, as well as for preservation and popularization of information on originality of the national traditions, about animal world and flora, the National Bank of Kazakhstan issues the coins of different thematic series. Among them - one of the most bright and popular is the series called “Outstanding events and people” which already now includes much more portraits of outstanding people, than it would be possible to place on six banknotes. The indisputable factor should also be taken into consideration: long useful life of coins in comparison with useful life of denominations. Paper denominations are not a memorial, not an art gallery, and people, using money, engross in thought about their presentation or image assignment extremely seldom. And though the National Bank watches the cleanliness - literally - a monetary turnover, calender butts, bends, attritions, inscriptions on banknotes happen and cause not a smaller regret and, to express more precisely, the insult of memory.

The National bank had provided for a parallel circulation of banknotes of old and new design within one year at the entire territory of the republic. Prior to the beginning of official presentation of a new series of the Kazakhstan currency, there has been developed a wide information campaign which has reached the most remote places of the country.

To the beginning of the campaign on exchange all regions of the Republic have been supplied with banknotes of all denominational values, in the amount necessary for exchange and satisfaction of the managing entities demand in cash money. Financial institutions which are the basic conductors of money receipt in circulation, had enough time for delivery of new banknotes even in the most remote divisions. The circumstance has provided the circulation of new banknotes in the whole country already in the first days after the announcement on renewal.

The world practice has accepted a division of protective elements into three groups. The first group - for population. The second – a so-called “cashiers level” when the elements of protection can be determined by special machines or devices. And - the third group of elements of protection, which is determined only by the central bank. No such precise gradation was applied in operating banknote succession, but the design of banknotes of 2006 takes this in consideration.

Denominational value: 200

tenge Size (mm): 126х64

Dominating color: orange-green

Denominational value: 500

tenge Size (mm): 130х67 Dominating color:

blue-grey

Denominational value: 1000

tenge Size (mm): 134х70 Dominating color:

yellow-brown

Denominational value: 2000 tenge

Size (mm): 139х73 Dominating color:

Dark and light green

Denominational value: 5000

tenge Size (mm): 144х76

Dominating color: dark brown-red

Denominational value: 10000 tenge

Size (mm): 149х79 Dominating color: purple-blue

Banknotes of 2006 uses the greatest possible quantity of protective elements determined without special means, i.e. visual and visible in formation light, as well as determined by feel. Banknotes have also some latent elements distinguished by means of special technical devices, but the main accent is made nevertheless to the fast and simple establishment of the banknote authenticity. From among the widespread protective elements we can note watermarks, coincidental images, optically changing paint, microtext, etc.

Also banknotes completely exclude the probability of erroneous perception or recognition of any denominational value as all denominational values differ both by colors, and by size. The color palette is selected so that to create a positive and easily recognized image of banknotes of any value. Every subsequent denominational value is bigger than the previous one by 4 mm in length and by 3 mm in width.

In the central part of obverse side of banknotes we can see the monument "Astana-Baiterek" – the achievement of the modern Kazakhstan architecture, a design and engineering idea, a symbol of development of independent Kazakhstan. In the middle part of a banknote on the color strips we can see fragments of notes of the national anthem of the Republic of Kazakhstan which has a digital designation of denominational value. To the left of “Baiterek” monument there is the State Emblem of the Republic of Kazakhstan put on the banknote using one color. In the top right part there is the image of the national flag. In the bottom part of the banknote there is an open palm of a hand, in classical heraldry symbolizing belief, sincerity and justice. On banknotes with denominational value 200 and 500 tenge there is a letter designation of denominational value in the state language which is located vertically in the bottom right corner, on the banknotes with denominational value 1000, 2000, 5000 and 10000 tenge such letter designation of denominational value is located beneath, to the left. The inscription “ҚАЗАҚСТАН ҰЛТТЫҚ БАНКІ” on denominational values 200 and 500 tenge is located under the notes of the national anthem, and on Denominational values 1000, 2000, 5000 and 10000 tenge – vertically, beneath, to the right.

The reverse side of banknotes contains images of landscapes and modern objects of architecture which are located in the territory of the country. They are framed with a contour of the map of Kazakhstan. To the left, underneath left and from above, to the right, there is a digital designation of the denominational value of banknotes, and from below in the middle - there is a letter designation of banknotes in Russian language. From above, in the middle there is an inscription “ҚАЗАҚСТАН ҰЛТТЫҚ БАНКІ” and the logo of bank-emitter is printed.

On November, 15, 2008 it will be a 15-th anniversary from the date of introduction of the national currency of the sovereign Kazakhstan - tenge. In commemoration of this event the National Bank of Kazakhstan has issued a memorable anniversary banknote with denominational value of 5 000 tenge on July, 8, 2008.

As a basis we used the operating banknote of

2006 sample which has been supplemented from above and from below with the anniversary inscription “ТЕҢГЕГЕ ОН БЕС ЖЫЛ” and with the new protective element Spark®. A protective element Spark is located on the anniversary banknote in the bottom left corner in the form of the flying eagle sharply defined and contrasting on the background of the shining sun and changing its color from brightly green up to brightly dark blue at change of inclination corner of the banknote.

Besides at change of the corner of inclination of the banknote the extended wings by their

sparkling and luminescence create a dynamic movement of the eagle, being one of the first in the world introduction of this element on the banknotes and a component part of the permanent work on perfection of the design of the national currency and amplification of protective properties. As it has been declared by the European Central Bank, the given element of protection against fakes will be a priority for a new series of banknotes of euro which is supposed to introduce in 2009. All other visual characteristics and protective elements of the given banknote coincide with banknote denominational value 5000 tenge issued in 2006. Meanwhile, the banknote with denominational value of 5000 tenge issued in 2006 shall remain the lawful payment instrument and shall be obligatorily accepted at its nominal value in the entire territory of the Republic of Kazakhstan in all kinds of payments, as well as for transfer to the bank accounts and for bank transfers.

TENGE – THE NATIONAL CURRENCY OF THE REPUBLIC OF KAZAKHSTAN

Tenge as the national currency plays an important role in the history of our country not only as an

economic basis of the country’s independence. In some aspect tenge is already a full-weight part of our history, a sign of the time.

It is already 15 years from the date of introduction of the national currency - tenge. It is one of the most remarkable dates from the date of announcement of our country independence. Introduction of the national currency has allowed the country to carry out an independent monetary and credit policy. For 15 years tenge has considerably improved in strength and became one of the most stable currencies in CIS countries.

Fifteen years of circulation of the Kazakhstan national currency - tenge allow to provide an objective estimation of the historical importance of tenge introduction for the present and future of Kazakhstan. Introduction of own monetary unit was the base for realization of economic sovereignty by Kazakhstan. With introduction of national currency the structural transformations oriented on construction of market economy have been accelerated.

It is required to remember also uneasy conditions in which Kazakhstan was developing and adopting own national currency - tenge. The beginning of 90th was a heavy enough period for acceptance of such life-changing decision for our country: large-scale decrease in production, break of economic relations, collapse of monetary and credit relations between former Union republics which has plunged new independent states into the epoch of natural barter at once. Acquiring of

independence by Kazakhstan in 1991 has stimulated the development of market relations in our country. As a result of the carried out exchange, banknotes issued in 1961-1992 to the total amount of 950,6 billion roubles had been withdrawn from circulation. The results of such exchange have confirmed our forecasts about the amount of roubles circulating in the territory of the Republic.

It was quite understandable, that the completion of money exchange was the beginning of that huge and important work, which the Government and the National Bank had to perform in order to ensure the main objective of that reform - stability and convertibility of the national currency in the difficult conditions of avalanching decline in production and, in essence, galloping inflation. Special attention had been given to the procedural issue of introduction of the national currency: delivery of new currency in exchange offices, date of start up and duration of money exchange, exchange factor. Tenge became the lawful payment instrument from the first day of money exchange beginning.

The national currency gains greater authority more confidently not only in our country, but also beyond its limits. In the process of industrial sector development, increase of foreign capital inflow into the country, appearance of large domestic investors (represented by pension funds) there was also a strengthening of the national currency and currency market. It was possible to observe the simultaneous increase of trust to the national currency.

Availability of own national currency has allowed the National Bank to carry out an independent monetary and credit policy. Granting of credits for covering of budgetary deficit and directive credits has been stopped. At the same time the functions of economy crediting have been completely transferred to the second tier banks. The National Bank has started to solve its primary goal - stability of the national currency, i.e. provision of low rates of inflation and stable exchange rate. Except for the rate of refinancing, introduction of rates of obligatory interventions reserves in the internal currency market, the National bank has began issue its own securities (short-term notes), to maintain operations in the open market and to grant credits “overnight”. Efficiency of monetary and credit policy carrying out was promoted by the Law “On the National Bank of the Republic of Kazakhstan” (March, 1995) according to which the National Bank became independent in its activity and accountable only to the President.

And only now, after 15 years, it is possible to realize to the full extent that precisely the introduction tenge in circulation has allowed us to make the first and such necessary steps on construction of the national market infrastructure and has enabled to carry out an independent monetary and credit and budgetary-tax policy and, accordingly, more effective policy of macroeconomic stabilization in the first years of reforms.

Stable and predicted demand for money is considered to be centre-based issue for formulation of effective monetary and credit policy. There are two methods of forecasting of demand for money. One of them is based on use of regressive methods for estimation of money demand function. Other approach is less formal and concentrates mainly on tendencies of money circulation speed.

Today it is possible to speak more confidently that from prevalence of survival tactics Kazakhstan has gradually passed to the strategy of economic growth which is a primary factor of forward and dynamical development of the country.

Actually from zero point Kazakhstan has constructed its effective bank system — in the

conditions of actual absence of any traditions of banking activity in the Republic. The given sector of Kazakhstan is the most reformed and dynamically developing, and already today our banking technologies are considered to be the most demanded, competitive export production in the post-Soviet space. The banking system of Kazakhstan is the most dynamically developing today in CIS countries.

One of the major problems of the National Bank as the authorized body on regulation of banking system is the protection of interests of depositors of banks and increase of population trust to the banking system. A number of very important measures have been taken for the decision of this problem.

Achievements in the financial sector are the result of major efforts on regulation and supervision of activity of the financial market participants.

Availability of stable national currency is one of the basic criteria of market relations development and economic independence of the country. Tenge reflects the general state of the country’s financial sector.

The fact, that tenge has taken its place as a currency of the independent state while it is difficult to call any currency as "independent", is indisputable. Definition "currency" assumes the participation in monetary settlements and economic exchange that specifies interrelation with many factors of development of world economy. The most important feature for any currency is its protectability. From the widest sense – from the consumer’s ability and stability, up to protectability from fake, in this sense Kazakhstan has something to be proud of. Tenge has become one of the most protected currencies in the world. The most advanced technologies have been applied at its production.

Kazakhstan tenge provides good understanding of Kazakhstan, as the country with ancient history. It provides the information about Kazakhstan as about the country which is engaged in creative work and is turned to the future.

Prospects tenge can be seen in further strengthening of tenge in relation to other currencies, as well as in strengthening of protective properties of the national currency – tenge.

It should be also noted about distribution of plastic cards emitted by the second tier banks, and used both in governmental, and in private sector. If earlier those were the salary cards now it is possible to observe more often the use of the cards as a payment instrument, both in the territory of Kazakhstan, and beyond its boundaries. As a matter of fact plastic cards together with cash dispensers are electronic cashiers, cashing the money. Development of payments with the use of plastic cards is accompanied by increase in cross sale via cash dispensers, which fact will undoubtedly be positively reflected on cash money circulation.

Today it is possible to state that inside the country tenge is considered to be a stable, enjoying the confidence of population currency.

At present time the Republic of Kazakhstan has its own banknotes production facilities in the form of Banknote factory and the Mint.

Manufacture of banknotes and coins, organization of their circulation, struggle with coinage offence are becoming more and more global problems. A lot of countries abandon independent manufacturing of banknotes and coins, transferring these functions partially or completely to the companies possessing more advanced technologies.

Banknote factory of the National Bank of the Republic of Kazakhstan, equipped by the most advanced printing equipment for protected printing of banknotes manufactures not only all banknotes of the national currency, but also other protected polygraphic production, both under governmental, and under commercial orders.

Kazakhstan Mint produces coins which quality has been highly estimated at the prestigious exhibition of Mints in Berlin (Germany) and invariably causes a great interest among experts and collectors.

Kazakhstan Mint has introduced the system of quality management under the international standard ISO-9001:2000 and has obtained certificates for manufacture of coin production and various state awards. Awards manufactured by the enterprise are the fine samples of jewellery art meeting the best world standards. Except for orders for manufacture of coins from other central banks, Kazakhstan Mint has received an invitation to participate at once in several international monetary programs, including programs devoted to the Olympic Games and Football Championship. Among the latest achievement it is possible to note the mastering of bi-color coins production, silver coins of “proof” quality with enamels, unique coins made of silver and gold with the weight of 1 kg and denominational value - 50 000 tenge devoted to 15-th anniversary of introduction of the national currency.

The head (obverse) side of coins in the top part represents the emblem of the Republic of

Kazakhstan in a frame five-multiple turned ornamental eight-final socket and inscription “ҚАЗАҚСТАН ҰЛТТЫ Қ BANK І” in the state language. In the bottom part there is an inscription “50000 ТЕҢГЕ” designating a denominational value of coin. In a circumferential direction of the coin there is a pearl beading margin draft and projecting edging. To the left of denominational value of the coin made of gold there is a trade mark of the Kazakhstan mint and inscription “1 kg.” designating the weight of the coin, on the right - an inscription “Au 999” designating the metal of which the coin has been made and assay value.

The reverse side (reverse) of coins in the central part on a background of surface depicting the images of symbols of the national currency represents the collage of three coins - "Horseman", “Regel’s Tulip” and "Space". To the left of the collage it is possible to observe the image of denomination of 10000 tenge. In the top part of the coin there is a graphic image of a symbol of the national currency - tenge. In a circumferential direction - inscription “ТЕҢГЕГЕ 15 ЖЫЛ” in the state language and number "2008" designating the year of mintage and projecting edging.

Images and inscriptions on obverse and reverse side of the coin are embossed. The lateral surface (rib) is also embossed. Memorable coins are made of gold of 999/1000 assay value, weight - 1000 gram, diameter -

100 mm., quality of manufacturing - «proof», Several words about the Museum of the National Bank of Kazakhstan. In order to preserve the

history of the Kazakhstan currency creation to descendants the National Bank of Kazakhstan has opened a Museum of the National Bank of Kazakhstan on November, 13, 1997. For the present day the fund of the museum numbers more than 5 thousand subjects of material culture. It presents copper and silver coins of XII - XIV centuries, banknotes of the pre-revolutionary Russia, banknotes of the Provisional government, RSFSR and USSR, as well as the bank notes of the CIS countries. The fund of the museum also has the Russian gold coins with 5 and 10 roubles denomination value of 1898-1899 years of issue with the image of the tsar - Nikolay II, silver coins with Peter the Great, Ekaterina II, Nikolay II, as well as the German Reichsmarks, the Russian-polish coins and coins from China, Mexico, Poland, Austria-Hungary.

Among the exhibits there are a lot of unusual money, for example “silk money”, “opium money”. A silver coin with 5000 tenge denomination and weight - 1 kg made of silver of 925 assay value, issued to the 10-th anniversary of independence of Kazakhstan, amazes and expresses admiration of museum visitors by it size and design.

This is the place where the gold coins, devoted to the 1500-th anniversary of Turkestan and the 10-th anniversary of independence of Kazakhstan are kept, as well as the place where

the first color silver coins which have been issued to the 10-th anniversary of the national currency, coins of series “Petroglyphs of Kazakhstan”, “Red book of Kazakhstan“, “Applied art of Kazakhstan”, “Architectural and historical monuments”, “Gold of nomads, “Coins of old calkers” are kept. Gold and silver coins, which have been issued by the Kazakhstan Mint - “Red wolf”, “Regel’s Tulip”, "Horseman" cause great interest of the museum visitors.

Appendix

Collection of coins with denominational valueа - tanga Source: http://www.rasmircoins.ucoz.ru/

Weight, gr:5,0 Diameter, mm:26 Mint: Gerat Denominational value: tanga Material: silver

Weight, gr:5,8 Diameter, mm: 24x27 Mint: Nimruz Denominational value: tanga Material: silver

Weight, gr:5,1 Diameter, mm:22 Mint: Shabankara Year: No Denominational value: tanga Material: silver

Weight, gr: 1,2 Diameter: 17x14mm Material: silver Mint: Khoresm Denominational value: Miri RRR!

Weight, gr:5,1 Diameter, mm:22 Mint: Save Denominational value: tanga Material: silver

Weight: 1,3 gr. Diameter: 15mm Material: silver Mint: Wiped (Gerat)

Weight, gr:5,2 Diameter, mm:22 Mint: Ordu and Humayun Denominational value: tanga Material: silver

Weight, gr:5,6 Diameter, mm:25 Mint: Gerat Denominational value: tanga Material: silver

Weight, gr:5,0 Diameter, mm:23x27 Mint: Kashan Year: no Denominational value: tanga Material: silver

Weight, gr:5,6 Diameter, mm:27x24 Mint: No Denominational value: tanga Material: silver