Institutional transformations in field of monetary policy. Restoring confidence

In order to improve the level of financial literacy of youth, awaken the aspirations to gain knowledge as well as the formation of research and innovative abilities, the First Deputy Chairman of National Bank of Tajikistan Nuraliev Jamoliddin Kamolovich has addressed with presentation “Institutional transformations in field of monetary policy. Restoring confidence” in the meeting for over 400 students, applicants, professors and instructors of the Russian-Tajik Slavonic University.

During the opening ceremony of the meeting-workshop, rector of the Russian -Tajik Slavonic University Khojazoda Tohir Abdullo has thanked the First Deputy Chairman of the National Bank of Tajikistan for the initiative and his support for this event, called the presentation a very important and timely training for applicants and students, taking into account the theory and practice of banking system and international standards, since the introduction of new methods using modern technologies is one of important aspects, which the Leader of the Nation constantly pointed out in the framework of implementation of reforms in field of education.

The First Deputy Chairman of National Bank of Tajikistan Jamoliddin Kamolovich, in turn, has welcomed the initiative of leadership of the Russian-Tajik Slavonic University and noted that today's meeting is undoubtedly considered very important for raising the level of knowledge and skills, as well as for developing financial and economic thinking, expanding the economic horizons of young people, taking into account modern theory and practice. It was noted that the presentation consists of 88 slides, it is compiled in three languages - official language, Russian and English, covers the period of last 11 years, the slides are provided with analytical materials and diagrams.

At the beginning of the meeting, the First Deputy Chairman of National Bank of Tajikistan Nuraliev Jamoliddin has informed the audience about the effective implementation of monetary policy and process of transition from the traditional monetary targeting regime to a qualitatively new monetary policy regime - inflation targeting, which is one of fundamental macroeconomic indicators for ensuring price stability and maintaining a stable level of inflation, prudent distribution of reserves, increased attraction of domestic investment that had a positive impact on the real growth of economy and improving the welfare of population. Then Jamoliddin Kamolovich has explained the implementation of monetary policy strategy through the effective use of new financial instruments, increasing the analytical potential and making forecasts, the transition to standards and methodologies of international statistics as well as the introduction of a centralized automatic transparent platform for electronic trading, the process of impact of the refinancing rate on the inflation rate, ensuring transparency in monetary operations and other effective reforms. The implementation of a number of effective reforms made it possible to maintain the inflation rate within the projected indicator and ensure the stability of the national currency.

Further, the First Deputy Chairman of National Bank of Tajikistan spoke about the banking system situation and improvement of its structure as a result of the “transition from quantity to quality” reforms, which led to an improvement in quality of the assets of banking system, reduction of problem loans, an increase in the level of capital adequacy and liquidity, increase in lending over the past 6 years. It was noted that as a result of the qualitative improvement of the banking system, the main indicators of financial stability, despite the recently excluded problem (insolvent) credit institutions from the banking system, are at a high level compared to the indicators of some countries, and in general, the improvement of the banking system continues.

The next part of presentation was devoted to important institutional reforms, including the creation of the National Processing Center for Money Transfers (NPCMT) and a completely unique institutionally balanced model for the transparency of foreign exchange flows, which is aimed at ensuring institutional transparency, healthy competition in the domestic foreign exchange market and development of banking systems at a qualitatively new level. Jamoliddin Kamolovich has emphasized that after the launch of the NPCMT, the risks associated with the liquidity of payment systems were completely eliminated, which made it possible to ensure healthy competition in the money transfer market, significantly reduce the risks of laundering proceeds gained from crime, financing terrorism and financing the proliferation of weapons of mass destruction in the country. It was also noted that the Center gave a powerful impetus to the growth of the infrastructure of cashless payments and during its operation the number of payment cards increased by 1.3 million units (3.5 million units in total) and the number of electronic wallets by 10 times.

At the same time Jamoliddin Kamolovich has noted the stable growth of foreign exchange market and the strategy for eliminating crises, has talked in detail about the strategy for allocating assets in managing international reserves and diversifying their structure, effective exchange rate policy and managing exchange rate fluctuations through appropriate mechanisms, about the measures taken by the National Bank of Tajikistan to prevent risks associated with COVID -19, about institutional reforms of the National Bank of Tajikistan for 2015-2021 based on the analyzes made for last 11 years.

In general, during the presentation, information was provided on the main macroeconomic indicators, in particular on GDP, real economic growth, inflation and inflation volatility trends over the past 11 years (2011-2021).

In the final part of presentation, the First Deputy Chairman of National Bank of Tajikistan Nuraliev Jamoliddin Kamolovich has underlined the importance of policy effected by the NBT, in particular, the implementation of an efficient monetary policy through the transition to inflation targeting regime, maintaining the stability of inflation rate, effective management of international reserves, exchange rate policy based on a free floating regime, financial inclusiveness and increasing financial literacy, as well as ensuring the stability of the banking system and building confidence in it.

It should be noted that at the end of the meeting, participants had the opportunity to discuss issues of interest to them in a free and open atmosphere. Participants asked questions about inflation, inflation projection, setting the refinancing rate based on indicators, preventing risks of the banking system caused by external factors, banking supervision and prudential standards, money emission, development of securities market and mortgage loans, about measures taken by the National Bank of Tajikistan to maintain exchange rate stability, protection of rights of financial services consumers, development of artificial intelligence and they were able to get certain answers.

Then the Rector of the Russian-Tajik Slavonic University Khojazoda Tohir Abdullo has expressed his gratitude to the First Deputy Chairman of National Bank of Tajikistan for the informative and detailed presentation, which covered a wide range of economic and banking issues in a completely new format.

Addressing applicants and students of the university, the First Deputy Chairman of National Bank of Tajikistan has urged them to use university resources, experience and the advice of experienced teachers, and taking advantage of available opportunities to improve their knowledge and skills, taking into account modern international practice, and thereby make a contribution to development of the country's economy. “If I managed to arouse your interest in obtaining knowledge, conducting research and innovation at least a little, and thereby make contribution to increasing the level of your knowledge and skills, then I will consider my today's mission completed,” has said Nuraliev Jamoliddin Kamolovich.

Press Division