The Russian ruble (RR) has lost more than 6.0 percent of its value against the Tajik national currency, the somoni (TJS), in a day.
According to data from the National bank of Tajikistan (NBT), the exchange rate of RR against TJS fell from 1:0.141 set for February 24 to 1:0.133 set for January 25.
Another round of depreciation of the Russian currency in Tajikistan has been observed since last Monday, when the exchange rate of RR against TJS was 1:0.149.
Thus, during this week, the Russian ruble lost 10.7 percent of its value against the somoni.
Volatility of the Russian ruble is usually linked to the international prices for hydrocarbons and fluctuations in the RR exchange rate are caused by a decline in global benchmark prices for hydrocarbons.
However, the current collapse of the Russian ruble and the Russian stock market downturn are explained by the increased geopolitical tensions present for Ukraine.
Geopolitical tensions have worsened this week, after Russian President Vladimir Putin made the decision to hold a special military operation in Ukraine in response to the address of leaders of Donbass republics.
Experts say the Western sanctions imposed on Russia over the Ukraine crisis will put economic strain on many smaller countries with close economic ties to the Russian Federation.
One of those countries is Tajikistan.
Even before the recognition announcement by the Kremlin, the international financial ratings agency Moody's put Tajikistan — along with Armenia, Belarus, Kyrgyzstan and Moldova — on a list of countries most likely to be affected by sanctions on Russia.
A study by Moody’s in particular, says that if sanctions are imposed, they will affect the CIS countries, which have close economic, financial, and energy ties with Russia through various channels.
Experts note that if RR devalues significantly, the currencies in Central Asia’s nations will also depreciate.
One of the first economic measures in Tajikistan that will be hit due to sanctions against Moscow are the many millions of dollars in remittances from the estimated more than 1 million Tajik labor migrants working in the Russian Federation.
Meanwhile, the Bloomberg reported on February 24 that Russian assets nosedived as military attacks across Ukraine prompted emergency central bank action and additional sanctions from the United States, wiping out almost $200 billion in stock-market value and roughly a third of the sovereign debt’s value.
The ruble sank to a record low, the cost of insuring Russian debt against default soared to the highest since 2009, and stocks ended the main trading session down 33% — their biggest-ever retreat, according to the Bloomberg. The Bank of Russia reportedly said it will intervene in the foreign exchange market for the first time in years and take measures to tame volatility.
