Uzbekistan’s official reserve assets as of October 1 reached US$ 41.14 billion (+5%), having increased by 1.98 billion in September, according to the Central Bank. This is another historic high for the entire period of statistics since 2013.

The Central Bank's reserves have been growing for the third month in a row: in July they increased by 1.06 billion dollars, in August - by US$ 1.75 billion, in September - by 1.98 billion dollars.

According to the regulator's data, last month foreign currency reserves increased by 518.3 million dollars - from US$ 8.19 billion to 8.71 billion (in June-July there was a decrease in the amount of 1.58 billion dollars due to the purchase of gold).

However, since the beginning of the year (January-September), foreign exchange reserves have dropped by US$ 659.9 million, including due to the repayment of debt on sovereign Eurobonds for US$ 500 million, which the country issued in 2019.

The physical volume of gold in reserves again slightly dropped by 20 thousand troy ounces (622 kg) - to 12.02 million troy ounces (373.9 tons).

Despite this, the value of gold reserves increased by US$1.46 billion - from US$ 30.4 billion to a record US$ 31.86 billion. The reason is that in September, gold quotes increased from US$ 2,502.8 to US$ 2,647.1 (they rose above US$ 2,670) per ounce (+ 5.7%).

In general, year-to-date, the value of the Central Bank's gold reserves has grown by 29.3%, or by US$ 7.23 billion.

It is worth noting that the Central Bank also includes in its reserves the assets of the Uzbekistan Fund for Reconstruction and Development (UFRD), which has effectively become part of the state budget. Its volumes are not disclosed. The international rating agency S&P Global Ratings previously reported that it was excluding the UFRD assets from the Central Bank's reserves, since "the fund's assets are intended primarily for fiscal, rather than monetary or payment needs."

According to estimates, Uzbekistan's usable foreign exchange reserves will decrease until 2027 due to the expected fall in gold prices and the ongoing current account deficit. The Central Bank's monetary gold reserves account for more than 80% of the total volume of gold and foreign exchange reserves. The Central Bank has a priority right to purchase gold mined in Uzbekistan. It buys gold with local currency and then sells dollars on the local market to offset the impact of its intervention on the Uzbek soums.