After a one-time correction of the official exchange rate of the Tajik national currency, the somoni (TJS) against the dollar (USD), TJS lost 9.4 percent of its value against USD on November 3. The National bank of Tajikistan (NBT) said the correction was intended to harmonize official and black-market rates.
On November 5, Bank Eskhata set USD to TJS buying rate at 1:11.31 and USD to TJS selling rate at 1:11.33.
Bank Arvand set USD to TJS buying rate at 1:11.32 and USD to TJS selling rate at 1:11.33, and the First MicroFinanceBank of Tajikistan set USD to TJS buying rate at 1:11.30 and USD to TJS selling rate at 1:11.33.
Meanwhile, the majority of banks operating in Tajikistan have stopped selling U.S. dollars long ago due to U.S. dollar deficit. However, they willingly buy U.S. dollars.
Bank currency exchange offices say that they can offer customers only the currency that they, in turn, receive from other customers.
Only a few banks in Tajikistan sell U.S. dollars, but in strictly limited amounts – up to US$200 per person.
However, in order to receive currency, you first need to sign up in the queue and wait for the call. This process may take several days due to the limited dollar reserves at exchange offices.
The non-banking market is on hold. According to some data, illegal currency jobbers have refrained from selling U.S. dollars since November 4, pending further developments in the foreign exchange market.
Meanwhile, Eurasianet says black market prices for the somoni have shifted to 12 against the dollar.
The gap between official and unofficial rates began to manifest in a pronounced fashion in 2016, after the financial regulator ordered the closure of all unauthorized currency exchange points. After that, only banks were able to perform foreign exchange operations. Any currency exchange transactions done outside banks are punishable by up to nine years in prison.
According to the NBT, the current official-unofficial rate gap stands at 9.3 percent instead of 2 percent set by Tajik central bank.
According to the NBT, the devaluation has resulted from the decline of remittances and the lack of foreign investment.
Eurasianet says The slide of the somoni comes just as prices for many staple goods are on the rise. Shoppers at bazaars have since the middle of October, following the presidential election, been reporting 30 percent increases in the cost of items like flour and sugar. Almost three-quarters of Tajikistan’s food needs are met through imports. The devaluation is, accordingly, certain to push prices up even further.
