The amount of cash money circulating in Tajikistan has risen 50 percent in four months to May 1, 2017, reaching 8.8 billion somoni, according to the National bank of Tajikistan (NBT).
Meanwhile, Tajikistan’s monetary base has increased over the same four-month period to 11.6 billion somoni.
Increase in the money supply has reportedly been caused by financial support provided by the government to the distressed banks.
The Tajik national currency, the somoni, has reportedly lost 7.9 percent of its value against the dollar at the official exchange rate over the first four months of this year.
Tajikistan’s inflation for the same four-month period has stood 4.4 percent, which was 1.9 percent more than I the same period last year.
Tajikistan has mainly resorted to “administrative resources” to keep the currency on an even keel.
In economics, the money supply (or money stock) is the total amount of monetary assets available in an economy at a specific time. There are several ways to define "money", but standard measures usually include currency in circulation and demand deposits (depositors' easily accessed assets on the books of financial institutions).
The monetary base (also base money, money base, high-powered money, reserve money, outside money or central bank money) in a country is defined as the portion of a commercial bank's reserves that consist of the commercial bank's accounts with its central bank plus the total currency circulating in the public, plus the currency, also known as vault cash, that is physically held in the bank's vault.
