The Stabilization Fund funds, where all foreign currency proceeds will be transferred to, to be kept in the Central Bank

The state information agency TDH reports that at the Cabinet session, held on 22 May, 2020, Deputy Prime Minister overseeing economy and finance Gadyrgeldy Mushshikov briefed President Gurbanguly Berdymukhammedov on the measures undertaken to transfer all exports proceeds in foreign currency to the Reserve Stabilization Fund.

All export proceeds in foreign currency generated by legal entities partially owned by the state are scheduled to be transferred to the Fund. The funds of the Stabilizations Fund will be accumulated in the Central Bank whereas companies will be reimbursed in manats at the official rate, which is 6,5 times less than the market rate.

Berdymukhammedov signed the resolution “Pertaining to the Reserve Foreign Currency Fund” and instructed that Mushshikov “meticulously execute the objectives”.

Moreover, the Deputy Prime Minister gave a progress report on licensing. Pursuant to the law of Turkmenistan “On licensing of specific operations” the list of authorized agencies, types of activities and the amount of state fees have been reviewed.

Let us recall that on 15 May, 2020 taking into account the economic problems, President Berdymukhammedov ordered to “transfer 100%, instead of the previously-established 50%, off all export proceeds in foreign currency to the Stabilization Fund” as a temporary measure.

 

 

Source: Chronicles of Turkmenistan

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