DUSHANBE, February 4, 2009, Asia-Plus — To maintain the national currency”s rate against the dollar the National bank of Tajikistan (NBT) should inject at least several millions of dollars into the domestic currency market, known Tajik economist, Professor Hojimuhammad Umarov, said in an interview with Asia-Plus, commenting on the current hike spike in the exchange rate of the dollar against the somoni (TJS).
According to him, the current amount of US dollar on the market is much less than the amount of the somoni that has led to increase in the exchange rate of USD against TJS. “A decrease in the amount of USD on the domestic currency market has resulted mainly from a decrease in the amount of money sent by Tajik labor migrants from abroad,” Dr. Umarov said.
The expert considers that to maintain the somoni’s exchange rate central bank should inject into the domestic market not one or two million US dollars but much more.
“I heard they want to withdraw some 170 million somoni from circulation,” said Umarov, “Reduction in the volume of the somoni may have not so good consequences; it, in particular, may lead to decrease in liquidity and delays in mutual payments between enterprises.”
The expert further added that to maintain the somoni’s exchange rate for the long-term prospects the country should develop the import-replacing production and take measures to ensure that export and imports volumes are nearly equal.
We will recall the NBT head Sharif Rahimzoda said on January 10 that central bank has limited opportunities to maintain the stability of the national currency rate. According to him, about $235 million per month needs to be injected into the domestic currency market to prop-up the somoni against the dollar. “Unfortunately, we do not have such an opportunity,” central bank head said, noting that the amount of the country’s gold and foreign currency reserves have already decreased from $350 million to $198 million in the period from January 2008 to January 2009.
