OREANDA-NEWS. May 4, 2009. A year ago the official exchange rate came into effect in Turkmenistan. This step marked the beginning of a new important stage in the ongoing financial and economic reforms initiated by President Gurbanguly Berdimuhamedov to build an optimal model of market economy and facilitate Turkmenistan’s integration in global economic system. An uncontestable fact: the unified exchange rate contributed to achieving stable economic growth and created the firm guarantees of further progress to the country.

As is known this process was initiated by the Resolution of the President of Turkmenistan “On the Improvement of Foreign Currency Operations in Turkmenistan” issued at the end of 2007. In May, 2008 the Central Bank of Turkmenistan established the exchange rate of 14,250 manats and starting from January 1, 2009 – 2.85 denominated manats per US\$1. The unified exchange rate allowed considerably strengthening the national currency, increase its purchasing capacity and eventually its circulation on the domestic market and create new incentives to improve banking services and financial and economic transactions.

The Resolution of the President of Turkmenistan endorsing the Regulations on the Interbank Monetary Exchange and the Regulations on Exchange Trade was an important step to strengthen the national financial and economic system. The procedures of selling the foreign currency in accordance with the established unified exchange rate to all legal entities irrespectively of the pattern of ownership and natural entities via the Interbank Monetary Exchange of Turkmenistan and the network of the exchange offices of the commercial banks were established. It should be noted that since the exchange rate was unified it is maintained stable and protected from any swing changes that testifies to the balanced financial policy and effectiveness of the ongoing reforms.

According to specialists the unified exchange rate had a positive impact on the State Budget and development of the banking sector and eventually contributed to stabilizing the macroeconomic situation in the country. Thus, the currency reform initiated by the Turkmen leader including unification of the exchange rates and demonstration of the national currency unit allowed building the firm foundation for further economic growth, development of the social sphere and steady improvement in people’s welfare.

It is remarkable that the exchange rate in Turkmenistan was unified within a quite short period of time as compared to other countries. It is a direct result of the Turkmen leader’s prudent policy aimed at intensive growth of the national economy, stability against the negative effect of outside factors including global financial crisis and enhancement of the country’s activity on world economic arena.