Mr. Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, visited Tashkent, Uzbekistan, on September 14–16. During his visit, Mr. Azour held meetings with the authorities and stakeholders to discuss the latest regional and global economic developments and the authorities’ recent economic reforms. At the conclusion of his visit, Mr. Azour made the following statement:
President Shavkat Mirziyoyev on September 13 signed the Measures for Further Improvement of Monetary and Credit Policy Resolution. The document points to the need for "a fundamental review of the current instruments of monetary policy to ensure macroeconomic stability and raising the living standards of the population."
Uzbekistan inflation rate for 2017 is revised upwards to 11-12%, the Central Bank’s director of monetary policy department Ilkhom Norkulov said at a briefing Thursday.
The sharp devaluation of the soums will have only a moderate capital impact on Uzbek banks rated by Fitch Ratings, primarily thanks to the sizeable US dollar-denominated capital and long FX positions at banks with significant foreign-currency denominated lending.
The Central Bank of Uzbekistan today set a new official exchange rate of 8,100 UZS to the US dollar, which is by 3889.65 soums higher than in the previous week (4,210.35 UZS).
President Shavkat Mirziyoyev on Saturday signed Priority Measures for Liberalizing Foreign Exchange Policy Decree allowing from September 5 to legal entities in Uzbekistan to buy foreign currency in banks without restrictions for payments under current international operations (import of goods, works and services, repatriation of profits, repayment of loans, payment of travel expenses and other transfers of non-trade nature).
Ongoing robust economic expansion and strong government support will help the Uzbek banking system navigate challenges thrown up by the accelerating depreciation of the local currency, the soum, says Moody’s Investors Service.
Uzbekistan has made substantial investment in upgrading its water supply and sanitation services in recent years. From 1995 to 2014, total public borrowing for improvements to these services amounted to US$ 344.1 million, the largest of any country in Central Asia.
The Procedure for Provision by the Central Bank of Cash Aids to Banks for Purchasing Foreign Currency from Individuals Regulation came into force, the Central Bank said in a statement, hinting to exchange offices will soon start foreign currency exchange operations.