In August 1920, Sokolnikov was posted to Central Asia as chairman of the government of Turkestan and commander of the Turkestan Front. He led the suppression of the Basmachi rebellion. He also oversaw the introduction of a new currency, the introduction of tax in place of appropriation of surplus produce, the return of free trade, the return of land to Kirghiz that had been seized by Russian settlers, and the revival of cotton production.