Monday, 22, April, 2024

 total value of monetary receipts (cash and through terminals) to banks in Uzbekistan topped 669 trillion soums, or US$ 53 billion in 2023, which is by 28% more than in 2022, the Central Bank said in a report.

Reportedly, cash receipts to banks over the year increased by 20% - to 414 trillion soums. Despite this, the share of cash fell from 66% to 62% (in 2021 it was 69%).

Receipts through terminals increased by 44% - to 255 trillion soums, their share - from 34% to 38% (in 2021 - 31%).

In 2023, 789 trillion soums were transferred to bank cards - 1.4 times more than the previous year. Funds received on cards are increasingly withdrawn in the form of cash: in 2019, 31.9% of funds were cashed out, in 2020 - 34.4%, in 2021 - 31.7%, in 2022 - 26.9%, in 2023 - 24%.

The share of cash in the total money supply (M2) as of January 1 of this year was at 21.5%, which is 0.8% lower compared to last year after growing in 2022. For comparison: the share of cash in circulation reached 27% in 2019, 23% in 2020, 19.7% in 2021, and 22.3% in 2022.

M2 includes cash in circulation (outside the banking system), transferable, savings and time deposits in national and foreign currencies of other financial institutions, government non-financial organizations, the private sector and individuals.

In May 2019, Chairman of the Central Bank Mamarizo Nurmuratov explained the high share of cash in the economy by the fact that residents of Uzbekistan carry out purchase and sale transactions mainly in markets.

“In each country, the share of cash in the total money supply depends on the level of development of trade and economic relations. Our people make 80% of purchases and sales in markets. For this reason, our share of cash is high compared to European countries and others. We've been operating at 26 percent [cash in circulation] for the last two years. Before that it was 40%. The greater the share of cash, the greater the risks for the development of the shadow economy,” he said.

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