The Russian ruble (RR) has lost 3.4 percent of its value against the Tajik national currency, the somoni (TJS), in a day.
According to data from the National bank of Tajikistan (NBT), the exchange rate of RR against TJS fell from 1:0.149 set for February 21 to 1:0.144 set for January 22.
Sharp fluctuations in the RR exchange rate in Tajikistan have been observed since the end of last year, when it lost 4.4 percent of its value against the Tajik national currency during the period from December 27, 2021 to January 7, 2022.
Volatility of the Russian ruble is usually linked to the international prices for hydrocarbons and fluctuations in the RR exchange rate are caused by a decline in global benchmark prices for hydrocarbons.
However, the current collapse of the Russian ruble and the Russian stock market downturn are explained by the increased geopolitical tensions present for Ukraine.
Geopolitical tensions have worsened this month. Tensions between Russia and members of the North Atlantic Treaty Organization (NATO) over Ukraine have escalated, and situation remains highly uncertain.
Meanwhile, the exchange rate of the Russian ruble against the somoni is important to families of Tajik labor migrants working in the Russian Federation.
Labor migrants are a critical component in the economy of Tajikistan as remittances keep many struggling families at home above the poverty line.
Hundreds of thousands of Tajik seasonal workers travel abroad each year, primarily to Russia but also to neighboring Kazakhstan, Kyrgyzstan and Uzbekistan seeking better employment opportunities.
According to data from Russian authorities, more than 1 million Tajiks are currently in the territory of the Russian Federation.
Since 2016, remittances in the Russian ruble have been issued by Tajik banks only in the national currency based on the exchange rate set at the time of receipt.
