DUSHANBE, September 2, 2010, Asia-Plus — Issuance of big bills is evidence of devaluation of the Tajik national currency, the somoni, Rustam Jabborov, an expert on the Tajik economy, said in an interview with Asia-Plus.
Money supply being put into circulation and issuance of large denominations is evidence of increasing inflation, according to him.
“If the National Bank of Tajikistan (NBT) puts cash into circulation, it means that there is need for this,” said the expert, “At present the biggest bill in Tajikistan is a 100-somoni banknote and it seems to be not enough for cash turnover and to meet market needs.”
According to him, increase in cash turnover indicates increase in shady economy and inability of Tajik banks to cope with existing cash turnover.
“To all appearance, coins in denominations of 5 and 10 diram will be withdrawn from circulation and the prices will be rounded off,” noted Jabborov, “I do not think that this will affect the currency exchange rates of foreign currencies.”
We will recall that Tajik central bank will issue 3-, 200- and 500-somoni banknotes on September 10 this year. According to the NBT officials, the objective of issuance of these banknotes is in improving the structure of the country’s monetary system.
Tajik national currency, the somoni, was introduced on October 30, 2000; it replaced the Tajikistani ruble, at the rate of 1 somoni=1000 rubles. The somoni is subdivided into 100 diram. The currency named after the farther of Tajik nation, Ismoil Somoni.
Banknotes in denominations of 1, 5, 10, 20, 50 and 100 somoni as well as coins in denominations of 5, 10, 20, 25 and 50 diram also 1, 3 and 5 somoni are currently in circulation in the country.
