The authorities of Turkmenistan are gravely concerned about queues which form at the banks. “Chronicles of Turkmenistan” has previously reported that the majority of deposit holders are trying to transfer money to bank cards to subsequently convert it abroad using the government-established rate.
It should be mentioned that there are two exchange rates in Turkmenistan the official (3,5 manats per $1) and the “black market” rate (about 6,6 manats per $1). Currency exchange using the state-established rate was prohibited in Turkmenistan’s banks in January 2016.
The editorial office of “Chronicles of Turkmenistan” received a copy of the document (pdf file in the Turkmen language), distributed by the head office of the Central Bank to velayat offices, pursuant to which a range of new restrictions and bans are recommended to fight queues as well as various new methods of transferring money oversees for subsequent conversion at the government-established rate.
The documents runs: “According to information obtained by the Central Bank of Turkmenistan, the opportunity provided to residents to use Visa and MasterCard cards to pay for services and merchandise, and especially the opportunity to transfer cash to a card which is later withdrawn outside the country in ATMs and retail outlets and brought back into the country as foreign currency for its future sale, resulted in a sharp increase in the number of those wishing to obtain such cards, and consequently led to queues in front of bank offices.
In order to reduce the queues the following actions are recommended:
To double the number of cash counters issuing Visa and MasterCard cards. This applies especially to the State Commercial Bank “Turkmenistan” which holds accounts of all public sector organizations with only one cash counter in each office being in operation;
The holders of bank cards who do not travel overseas but make online purchases with the merchandise from overseas never being delivered in their names need to be identified. They need to be warned in person and if they continue to do so, the possibility of their bank cards being cancelled needs to be examined;
Public sector staff who hold Visa bank cards and who, on a monthly basis, deposit money to their account and often travel abroad (on holidays or for a course of treatment) need to be interviewed by their supervisors and warned about potential consequences;
The Ministry of Finance jointly with the banks is obliged to carry out an investigation of entrepreneurs who indicate 42 210 manats as their annual income which gives them the opportunity to transfer 3517,50 manats to Visa or MasterCard cards on a monthly basis, is obliged to find out whether they use these funds as intended, i.e.
to purchase merchandise or incur other expenses associated with their business activities (they are now filing their income tax declarations for the first six months).In case violations are identified, ensure relevant measures towards these individuals be taken;
In order to prevent cases of presenting falsified guarantees by entrepreneurs and individuals from heads of daikhan associations on leased lands with a view to obtaining a Visa card, as well as attempts to open a card in the name of other residents, local khyakimlik’s offices need to be informed that joint efforts in this direction will be undertaken;
Recently there have been more frequent incidents of providing falsified documents on the sale of cattle which allows transferring cash to Visa and MasterCard bank cards. In this connection specific organizations responsible for issuing such documents need to be identified.
In connection with the need to prevent incidents of presenting falsified documents by residents to transfer cash to Visa and MasterCard cards, and with a view of reducing queues at the banks, coordinated work with the local authorities needs to be organized and control needs to be exercised”.
The document was drafted on behalf of the Chairperson of the Central Bank, Merdan Annadurdyev (see the photo).