DUSHANBE, September 1, 2010, Asia-Plus — Tajikistan’s market needs big banknotes in circulation, a statement released by the National Bank of Tajikistan (NBT) in connection with issuance of 3-, 200- and 500-somoni banknotes said.
The Tajik national currency, the somoni, was introduced ten years ago and the country’s gross domestic product has increased 11 times, the revenue part of the national budget has increased 22 times and monthly wage has increased 17 times over the past decade.
Besides, trade inside the country and the country’s external trade turnover have increased ten and six times respectively over the report period. Prices of food products have increased four times over the past decade.
All this has led to a 22-fold increase in money aggregates in the country, the statement said. “Thus, small denominations, 1- and 5-somoni banknotes, accounted for 42 percent of the volume of money that was in circulation in early 2001, while now they account for only 9 percent,” said the statement, “In the meantime, the share of large denominations, 50- and 100-somoni banknotes, has risen from 9 percent in early 2001 to 52 percent.”
These figures show that Tajikistan’s market needs large denomination banknotes, and therefore, it has become necessary to issue banknotes of higher denominations.
Ignoring this issue may lead to increase in use of foreign currency that will affect the country’s economy, the statement said.
Besides, the large number of small denominations leads to increase in expenses on issuance and transportation of banknotes.
