Identifier
Created
Classification
Origin
08ASHGABAT180
2008-02-05 11:02:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:
TURKMENISTAN: CENTRAL BANK ANNOUNCES EXCHANGE
how-toVZCZCXRO9727 PP RUEHAG RUEHAST RUEHBI RUEHCI RUEHDF RUEHIK RUEHLH RUEHLN RUEHLZ RUEHPW RUEHROV RUEHVK RUEHYG DE RUEHAH #0180 0361102 ZNR UUUUU ZZH P 051102Z FEB 08 FM AMEMBASSY ASHGABAT TO RUEHC/SECSTATE WASHDC PRIORITY 0215 INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE PRIORITY RUCNCIS/CIS COLLECTIVE PRIORITY RUCNMEM/EU MEMBER STATES COLLECTIVE PRIORITY RUEHAK/AMEMBASSY ANKARA PRIORITY 3341 RUEHBJ/AMEMBASSY BEIJING PRIORITY 1157 RUEHKO/AMEMBASSY TOKYO PRIORITY 1025 RUEHIT/AMCONSUL ISTANBUL PRIORITY 1594 RUCNDT/USMISSION USUN NEW YORK PRIORITY 0713 RHMFIUU/CDR USCENTCOM MACDILL AFB FL PRIORITY RUEHVEN/USMISSION USOSCE PRIORITY 2186 RUEAIIA/CIA WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUEKJCS/JOINT STAFF WASHDC PRIORITY RHEHNSC/NSC WASHDC PRIORITY RUEKJCS/SECDEF WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
UNCLAS ASHGABAT 000180
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
E.O. 12958: N/A
TAGS: PGOV ECON EFIN TX
SUBJECT: TURKMENISTAN: CENTRAL BANK ANNOUNCES EXCHANGE
RATE WILL STAY STABLE
REF: A. 07 ASHGABAT 1230
B. 07 ASHGABAT 1239
C. 07 ASHGABAT 1251
D. 07 ASHGABAT 1403
E. ASHGABAT 0017
UNCLAS ASHGABAT 000180
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
E.O. 12958: N/A
TAGS: PGOV ECON EFIN TX
SUBJECT: TURKMENISTAN: CENTRAL BANK ANNOUNCES EXCHANGE
RATE WILL STAY STABLE
REF: A. 07 ASHGABAT 1230
B. 07 ASHGABAT 1239
C. 07 ASHGABAT 1251
D. 07 ASHGABAT 1403
E. ASHGABAT 0017
1. (U) Sensitive but unclassified. Not for public Internet.
2. (U) Following several days of continuing rumors that
Turkmenistan's commercial exchange rate of 19,800 manat to
the dollar was going to appreciate, Turkmenistan's state-run
Watan TV news quoted the head of the Central Bank's Foreign
Currency Regulation and Foreign Economic Relations
Department, Alladurdy Meredov, that the Central Bank at
present has no plans to revise the current exchange rate.
The 19,800 manat/dollar rate has remained the same since the
introduction of (new) currency-exchange operations at the
beginning of the new year, and will remain so "in the
future." Meredov stressed, "This rate will be stable so that
we maintain stability within our enterprises and
organizations." He also asserted that the Central Bank has
"sufficient" reserves of both manats and foreign hard
currency to accommodate foreign exchange needs.
3. (SBU) The rumors that the manat would appreciate to a
rate of 15,000 manat/dollar following a Cabinet of Ministers
meeting on January 31 started circulating earlier that day.
By mid-afternoon, a number of exchange points around
Ashgabat, including the one in the Yimpash department store
frequented by foreigners and Turkmen elite, closed early due
to heavier-than-usual currency exchanges by a jittery local
population. However, most of the main banks remained open
through the day. Dollar-to-manat exchanges remained heavy
February 1-2.
4. (SBU) COMMENT: As demonstrated in the recent increased
sales of dollars here, popular confidence in the government's
ability to merge the "official" exchange rate of 6250
manats/dollar with the "commercial" rate has been shaky ever
since November 2007, when a poorly handled early effort to
unite the two rates led to panic selling of dollars, hurting
many of Turkmenistan's citizens who keep their savings in
dollars (Refs A, B and C). Whether the reportedly
authoritative rumors January 31 were a trial balloon for a
new "readjustment" of the manat rate or just another stray
rumor gone rampant, the Central Bank announcement -- clearly
meant to calm the situation -- is unprecedented, and offers a
major departure from former President Niyazov's "Golden Age"
approach of denial. In fact, the episode shows, in a major
departure from the past, the government responding in an open
manner to a concern of the general public. END COMMENT.
HOAGLAND
SIPDIS
SENSITIVE
SIPDIS
STATE FOR SCA/CEN, EEB
TREASURY FOR BAKER/LANIER
E.O. 12958: N/A
TAGS: PGOV ECON EFIN TX
SUBJECT: TURKMENISTAN: CENTRAL BANK ANNOUNCES EXCHANGE
RATE WILL STAY STABLE
REF: A. 07 ASHGABAT 1230
B. 07 ASHGABAT 1239
C. 07 ASHGABAT 1251
D. 07 ASHGABAT 1403
E. ASHGABAT 0017
1. (U) Sensitive but unclassified. Not for public Internet.
2. (U) Following several days of continuing rumors that
Turkmenistan's commercial exchange rate of 19,800 manat to
the dollar was going to appreciate, Turkmenistan's state-run
Watan TV news quoted the head of the Central Bank's Foreign
Currency Regulation and Foreign Economic Relations
Department, Alladurdy Meredov, that the Central Bank at
present has no plans to revise the current exchange rate.
The 19,800 manat/dollar rate has remained the same since the
introduction of (new) currency-exchange operations at the
beginning of the new year, and will remain so "in the
future." Meredov stressed, "This rate will be stable so that
we maintain stability within our enterprises and
organizations." He also asserted that the Central Bank has
"sufficient" reserves of both manats and foreign hard
currency to accommodate foreign exchange needs.
3. (SBU) The rumors that the manat would appreciate to a
rate of 15,000 manat/dollar following a Cabinet of Ministers
meeting on January 31 started circulating earlier that day.
By mid-afternoon, a number of exchange points around
Ashgabat, including the one in the Yimpash department store
frequented by foreigners and Turkmen elite, closed early due
to heavier-than-usual currency exchanges by a jittery local
population. However, most of the main banks remained open
through the day. Dollar-to-manat exchanges remained heavy
February 1-2.
4. (SBU) COMMENT: As demonstrated in the recent increased
sales of dollars here, popular confidence in the government's
ability to merge the "official" exchange rate of 6250
manats/dollar with the "commercial" rate has been shaky ever
since November 2007, when a poorly handled early effort to
unite the two rates led to panic selling of dollars, hurting
many of Turkmenistan's citizens who keep their savings in
dollars (Refs A, B and C). Whether the reportedly
authoritative rumors January 31 were a trial balloon for a
new "readjustment" of the manat rate or just another stray
rumor gone rampant, the Central Bank announcement -- clearly
meant to calm the situation -- is unprecedented, and offers a
major departure from former President Niyazov's "Golden Age"
approach of denial. In fact, the episode shows, in a major
departure from the past, the government responding in an open
manner to a concern of the general public. END COMMENT.
HOAGLAND