On June 11, 2025, the Financial Market Management of National Bank of Tajikistan made a presentation on the topic “Modernization of required reserves in the Republic of Tajikistan - effective implementation of monetary policy” for providing the basis for the transition to an inflation targeting regime, implementing the provisions of the “Monetary Policy Outlook of the Republic of Tajikistan for 2024 and medium-term period”, “Monetary Policy Strategy of the Republic of Tajikistan for 2021-2025” and “Policy Coordination Leverage Program (PCI) with the IMF until 2025”, introducing an improved monetary policy lever - the mechanism for intermediated required reserves. Representatives of the country's financial institutions and relevant structural units of the National Bank of Tajikistan have participated in the meeting.
The purpose of the presentation is to introduce the transition to the reserve requirement averaging mechanism and the corrective methods for its implementation, while strengthening mutual cooperation with financial credit institutions.
It should be noted that the implementation of the reserve requirement averaging mechanism contributes to the efficiency of liquidity management and management by financial credit institutions, the development of the interbank market, improvement of regulation and liquidity forecasting of the banking system as well as the strengthening of the transmission mechanism of monetary policy.
The presentation has stated the advantages of modernizing reserve requirements in implementing an effective monetary policy and the practical experience of its implementation at the National Bank of Tajikistan. The participants also have exchanged views on the topics under discussion, including the structure and use of monetary policy instruments, their impact on monetary and macroeconomic indicators, and the importance of the liquidity forecasting mechanism for the banking system.
In the final part of the presentation, representatives of financial institutions have received specific answers for their questions regarding the formation of required reserves, the regulation of their funds and other key aspects of the mechanism for averaging required reserves.
Financial Market Management
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13.06.2025
