The economic situation of the country for eight months in 2012 has characterized by stable growth in production and supply of domestic goods and products. According to the updated information, the GDP has reached TJS 20,4 billion, and its real growth in comparison with the same period of last year has made 7,5%. In particular, growth in retail sales made 18,9%, services 14,0%, industry 11,7%, and agricultural production 10.2%.
    For eight months of current year the inflation rate has made 4,2%, that in comparison with the same period of last year has decreased by 4,3 %. The current inflation rate was occurred at the expense of price increase for paid services 13,7%, non-food products 4,5% and foodstuffs 2,0%. According to the analysis of the National Bank of Tajikistan, core inflation for January-August of this year has made 1,8%.
    In the last two years it has been continued implementation of balanced monetary policy under forecast of monetary policy of the Republic of Tajikistan and the program of the Government of the Republic of Tajikistan on monetary policy, which was aimed at maintaining a stable price level, stability of the national banking system and the maintenance of program level of monetary indicators.
    For eight months of 2011 in connection with decrease of inflationary pressure, refinancing rate was reduced from 9,8 to 6,5% per annum. Reserve ratio, subject to provide liquidity to the banking system and supporting of real sector of economy for savings in national currency was reduced by 2.0 % and in foreign currency by 1,0 % and it is established at level of 5,0% and 8,0% per annum.
    As the result of timely operation implementation, using instruments of monetary policy, the volume of reserve money as a indicator program for 2011-2012 was gradually increased and as of July 31, 2012 has made TJS 3836,2 billion that in comparison with the same period of the previous year is more on 14,2%. This growth reflects the strengthening of the banking system.
    Basic monetary indicators which are supported in the framework of the Government of the Republic of Tajikistan on financial and economic policies, such as the net international reserves, total foreign assets and net domestic assets is gradually increased. In July of current year in comparison with the same period of 2011, net international reserves increased by 31,4%, total foreign assets by 34,1% and net domestic assets by 30,0%.
    Efficient providing of money circulation, which is based on the requirements of the economy, has a great importance in implementation of monetary policy. In this regard, issuance of cash into circulation occurs with the account of GDP and other indicators of the real sector.

Monetary Policy Department