Turkmenistan to follow moderate inflation policy
Turkmenistan, Ashgabat, September 17 / Trend H. Hasanov /
Policies to ensure a moderate level of inflation and the effectiveness of currency operations are being implemented by Turkmenistan to affect macroeconomic indicators and increase the supply of goods and services on the national market, the Turkmen Institute of Strategic Planning and Economic Development said.
"A comprehensive anti-inflation policy that aims at ensuring a low level of inflation will be conducted to avoid significant fluctuations. The rate will be reduced by 4 percent till 2015," a statement said.
Accumulation of foreign currency will be increased through export growth and, consequently, a growth in the balance of payments. An increase in the share of local enterprises in contracting work will reduce foreign costs for construction services.
Foreign currency will be saved in 2011-2015 to render services in trade and textile industry. Conditions will be created to boost exports and investment inflows into the Turkmen economy, as well as to concentrate resources on priority projects.
Measures will be taken to improve the legislative base on which to develop a system of banking supervision of credit institutions, insurance of physical entities' deposits, and foreign exchange regulation.
The planning statement said that amendments to existing legislation will be essential to form an adequate legal base for an effective banking sector.
The integration of the banking sector in the international banking and financial system will continue. National and foreign investors and depositors' confidence in banks should increase as a result.
Qualitative changes in the economy will affect the growth of assets of the banking sector and the scale of bank loans should increase dynamically, with an improvement in their structure. The structure of loans should rationally increase the share of long-term credit lines, stipulating the national development priorities.
The system of money circulation continues to improve: the share of cash will reduce stage-by-stage, and, consequently, the proportion of urgent cash funds will rise.
An important tool to enhance the stability of the financial sector and economy will be a national interbank payment card system. It will create a common currency area to serve people and commercial enterprises.