The exchange rate of the Tajik national currency, the somoni (TJS) against the U.S. dollar (USD), which has been relatively stable since the beginning of the year, has begun devaluing again.
Over the first six months of this year, the somoni has lost only 0.2 percent of its value against the U.S. dollar (official exchange rate) — from 11.3:1 on January 1, 2021 to 11.3210 on July 1, 2021.
Meanwhile, over the past two months, the official exchange rate of the somoni against dollar has risen from 11.3232:1 on September 1 to 11.2480 on October 31.
However, the exchange rate of the somoni against the U.S. dollar has begun devaluing this month. Today, the National Bank of Tajikistan (NBT) set the official exchange rate of the somoni against the U.S. at 11.2830:1.
The official exchange rate is the rate of exchange announced by a country's foreign exchange administration, usually used by countries with strict foreign exchange controls.
The market exchange rate refers to the real exchange rate for trading foreign exchange in the free market.
Experts associate the stability of the currency in recent year with a reduction in the country's trade deficit due to the sale of precious metals.
During last year, the somoni lost 16.6 percent of its value against the U.S. dollar – from 9.69:1 on January 1, 2020 to 11.3:1 on December 31, 2020.
Last year, Tajikistan saw sharp currency devaluation in late March, when the somoni lost nearly 5.3 percent of its value against the dollar (at the National bank rate), when an average official buying rate of USD against TJS increased from 1:9.7 in mid-March to 1:10.2 on March 30.
The NBT specialists attributed last year’s devaluation of the Tajik national currency against the dollar to impact of global and regional economic and financial processes, a negative trade balance, decline in remittances and decrease in supply in the country’s currency market.
