Turkmenistan’s bazaar economy
21.04.2008
TIHR
The US dollar is gradually becoming the main currency in Turkmen bazaars.
Last week we reported that the statement made by the authorities about the need to introduce a unified dollar exchange rate to replace the state-controlled ?nd commercial rates had sparked a boom in the exchange of foreign currency.
From April 15 to April 19, huge queues and later on even crowds formed at the currency exchange offices. In fact, only a few exchange offices are currently operating (they are open only in several banks and their branch offices).
Due to the shortage of manats each person was only permitted to exchange up to 50 dollars. In selected banks the residents were notified immediately that no manats were available.
The boom slightly slowed down on Saturday after it was announced in the currency exchange offices that the new market exchange rate of 17,430 manats per dollar had been introduced (previously, the commercial dollar exchange rate equalled 20,000 manats). At the same time today, on April 21, the currency exchange offices has stopped buying dollars, but still sell them. The currency traders in the local markets buy dollars at a rate of 16,800 manats.
Interestingly, that the market sellers have decreased prices for perishable goods, whereas durable commodities have disappeared from the shelves to be hidden until "better times”, i.e. before prices become more stable or predictable. Dollars are frequently used as the means of payment in the local bazaars, which was not previously common practice.
The public sector employees are concerned about the national currency deficit. In the run-up to the May holidays they may not receive their pay checks.
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