Meeting of Talibzoda Firdavs with the European Bank for Reconstruction and Development delegation

On March 5, 2024, Chairman of the National Bank of Tajikistan Tolibzoda Firdavs Nazrimad met with the Head of the European Bank for Reconstruction and Development (EBRD) Office in Tajikistan Mr. Holger Wiefel, Executive Director of EBRD Treasury Department Mr. Axel van Nederveen, Head of EBRD's Operational Department for Cooperation with Central Asian Financial Institutions Jahongir Shamsiev, Director of National Currency Portfolio Management Ms. Aude Pacatte, Principal Trader Mr. Azamat Mauilsharip and Head of the Financial Department of EBRD Representative Office in Tajikistan Bahodur Yusupov where the results of the first stage of the project «The analysis of money market structure in the Republic of Tajikistan» were discussed.

Chairman of the National Bank of Tajikistan Firdavs Tolibzoda thanked the EBRD delegation for effective long-term cooperation and continuous support in the development of country's economy, especially providing financial and technical assistance to the Republic of Tajikistan’s banking system.

It was further noted that determining the foundations and factors of interbank money market development, as well as a securities market, plays an important role in promoting the country's monetary and credit policy and ensuring the stability of financial sector. Following the above-mentioned points, a cooperation agreement was signed between the National Bank of Tajikistan and the European Bank for Reconstruction and Development on studying and analyzing the structure of money market. According to the planned program further steps are planned to continue the money market analysis project in the coming years with forming a working group which will directly exert positive influence on assessment and identification of obstacles, as well as interbank money market.

Money market is considered one of the key sectors of financial system and in order to provide a modern infrastructure for issuing short-term loans and placement of funds between credit institutions it promotes the development and stability of the country's economy, as well as the effective distribution of banking resources to various sectors of the economy. Also, the development of money market provides a good foundation for the improvement and effectiveness of results of the National Bank of Tajikistan’s activities and tasks in financial system of the country, and speeds up the process of transition to the modern mode of monetary and credit policy - inflation targeting - Firdavs Tolibzoda said.

The financial system of developed countries with a developed money market has led to a number of results, including the development of interbank credit market and growth of interbank operations, the regulation and management of credit institutions’ liquidity, timely access of credit institutions to short-term liquidity in the event of funds shortage, the inflow of more capital into the banking system, especially from foreign investors, the effectiveness of tools and mechanisms for the implementation of monetary and credit policy, such as REPO operations and the development of government securities market.

During the meeting the parties discussed the work done in the first stage of this project and emphasized its importance for the further strengthening of money market in the Republic of Tajikistan.

At the end of the fruitful meeting the parties expressed their desire for strengthening effective cooperation.