DUSHANBE, December 25, Asia-Plus – Negative trade balance is the main reason for increase in the exchange rate of USD in Tajikistan, a source at Tajik central bank said.
According to the National Bank of Tajikistan (NBT), the exchange rate of US dollar has risen by 6.8 percent this year. “There are many both domestic and foreign factors contributing to fluctuation in the rate of exchange in the country, but the main reason remains the negative trade balance,” the NBT source said, noting that in January-November this year, imports have exceeded exports by US$264.2 million.
The source noted that in the beginning of the year the official exchange rate at the country’s central bank was 3.18 somonis for US$1.00, while by December 25, it has been 3.42 somonis against US$1.00.
The Asia-Plus interlocutor noted that the government does not control the exchange rate of national currency. “Somoni is a free-floating currency and its exchange rate is allowed to vary against that of other currencies and it is determined only by the market forces of supply and demand,” the central bank source said.
In the meantime, experts from the Ministry of Economic Development and Trade (MoEDT) said that rising exchange rate of USD leads to increase in prices of goods and paid services rendered to the population. “Since consumer goods are imported from other countries people calculate purchases in terms of dollars that affects formation of prices of goods being sold in the republic,” a source at a MoEDT noted.
We will recall that the first national currency – Somoni was introduced in 2000, with support of International Monetary Fund (IMF) and the World Bank (WB). The initial rate of exchange of the new currency was set at 2.2 Somoni for US$1.00.
