Despite the strong remittance inflows, Tajikistan’s external position deteriorated in Q1 2023, says a report released by the World Bank on October 5.
“Sluggish Growth, Rising Risks: Europe and Central Asia Update, Fall 2023” says the current account recorded a deficit of 2.6 percent of GDP in Q1 2023 compared with a15.6 percent surplus in 2022. The trade deficit widened from 30 percent of GDP in H1 2022 to 41 percent in H1 2023.
Monetary authorities reportedly intervened in the foreign exchange market to support the national currency, the somoni (TJS), resulting in a fall in international reserves from USD 3.8 billion at the end of 2022 to USD 3.2 billion in mid-2023.
Reserves remain adequate at more than 6.5 months of import cover. In H1 2023, the state budget was in balance, the report says.
Meanwhile, the first deputy head of the National bank of Tajikistan (NBT), Firdavs Tolibzoda, told reporters in Dushanbe in August this year that the country’s internationals reserves have covered 6.9 months of imports as of June 30, 2023.
He noted that in case of necessity part of the international reserves is used to support the exchange rate of the national currency.
According to data from the NBT, TJS has lost 7.0 percent of its value against the dollar (USD) over the first six months of this year, falling from 10.2024:1 on December 31, 2022 to 10.9140 on June 30, 2023.
As of October 18, an official exchange rate of USD has been set by the NBT at 1:10.9595.
