The common European currency, the euro, shows high volatility in Tajikistan. The official exchange rate of the euro against the Tajik national currency, the somoni, remains highly unstable. Thus, it fell from 1:9.9921 on October 3 to 1:9.986 on October 4. On October 5, it rose to 1:10.2057, while today it fell 1:1055.
High volatility of the euro in Tajikistan has been observed since the second half of September. In a week, the euro has lost 2.5 percent in its value against the somoni: its exchange rate against the somoni fell from 10.2224 on September 19 to 9.9644 on September 26.
Further with sharp daily fluctuations in both directions, the exchange rate of the euro against the somoni on October 5 practically returned to the exchange rate of September 19, but today, it lost 1.0 percent in its value against the somoni, falling to 1:1055.
Local experts note that the common European currency is not in high demand in Tajikistan and the high volatility of its exchange rate in Tajikistan should not be associated with supply and demand in the domestic foreign exchange market.
They attribute volatility of the euro in Tajikistan to change in its exchange rate against the Russian ruble.
It should be noted that the Tajik national currency is actually pegged to the Russian ruble due to the high financial and economic dependence of the country on Russia.
An official exchange rate of the Russian ruble against the somoni has fallen 1.4 percent this month: from 1:0.1689 n October 1 to 1:0.665 on October 6. The exchange rate of the U.S. dollar against the somoni remains unchanged – 1:10.22.
Since the beginning of the year, the euro has lost 21 percent in its value against the somoni and the U.S. dollar has lost 9.6 percent in its value against the somoni, while the exchange rate of the Russian ruble against the somoni has risen 11 percent since the beginning of this year.
According to data from the Ministry of Economic Development and Trade of Tajikistan (MoEDT), Tajik importers of Russian products over the first six months of this year have transferred more than 50 percent of their contracts from the U.S. dollar to the Russian ruble.
Russia reportedly accounts for about a third of Tajikistan’s overall imports. Over the first eight months of this year, the bilateral trade between Tajikistan and Russia has amounted to more than 1 billion U.S. dollars. Over the reporting period, Russia has accounted for 22.4 percent of Tajikistan’s external trade turnover.
