Thursday, 22, April, 2021

Finances

An International Monetary Fund (IMF) staff team led by Ron van Rooden conducted a remote mission from January 25 to February 16, 2021 in the context of the 2021 Article IV consultation with Uzbekistan. At the conclusion of the mission, Mr. van Rooden issued the following statement:

For the first time in Uzbekistan’s history, the Governor from the Republic of Uzbekistan - the Deputy Prime Minister/Minister of Investments and Foreign Trade S. Umurzakov was elected Chairman of the Board of Governors of the Islamic Development Bank (IDB) Group, the highest governing body of the Bank.

Fiscal stimulus package and the effects of relative easing of monetary conditions in 2020 will help support economic activity in the first half of 2021 on the demand side, the Central Bank noted.

The level of dollarization of the Uzbek economy is planned to be cut from 50% to 45%, announced the Deputy Chairman of the Central Bank Behzod Khamraev.

The volume of Uzbekistan’s gross foreign exchange reserves as of January 1 topped US$ 34.9 billion, an increase by US$ 2 billion compared to December, the Central Bank said.

Today, the Board of the Central Bank decided to keep the interest rate at 14% per annum. in September 2020 the regulator lowered the base rate by 1 pp. to 14% per annum.

Despite the lockdown and pandemics, the volume of remittances to Uzbekistan in 2020 topped US$ 6.03 billion, an increase by US$ 17 million dollars or 0.3% to 2019, the Central Bank said.

The European Bank for Reconstruction and Development (EBRD) responded to the coronavirus pandemic challenges in Central Asia’s most populated country by pledging US$521 million (€429 million) through 18 projects in various sectors of the national economy. The EBRD resources were used to support the country’s banking sector and SMEs access to finance, upgrade key infrastructure and promote the development of renewable energy.

U.S. International Development Finance Corporation (DFC) and the Republic of Uzbekistan are proud to announce that they are expanding their partnership through Uzbekistan’s support for the Abraham (Ibrahim) Fund.

US$ 40.7 million will be provided for the reconstruction of two sections of the M39 Tashkent-Termez highway with a total length of 21 km, the Dec. 31 Resolution of the Cabinet of Ministers stipulated.