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.
President of Uzbekistan on August 17 signed resolution creating Entrepreneurship Development Support National Fund within the Cabinet of Ministers.
On August 15, a two-day seminar on gender aspects of financing small business for representatives of 28 commercial banks kicked off in Tashkent. The seminar was organized by the Chamber of Commerce and Industry-UNDP ‘Business Forum of Uzbekistan (Phase III)' project jointly with the Women's Committee and the Central Bank. The seminar aims to empower women in Uzbekistan.
Starting from August 22, 2017, the Central Bank of Uzbekistan will issue a new 50,000 soum banknote, СBU said in a statement.
The Russian GazPromBank and VneshEconomBank launched a $ 1 billion ($ 500 million each) credit line to the National Bank of Uzbekistan (NBU), a source in the NBU said.
The total investments in fixed assets in Uzbekistan in January-June of 2017 amounted to 26.6 trillion soums (or $7.5 billion), which is by 8.3% more to the same period in 2016.
Uzbek Agrobank signed a memorandum of cooperation with the Vietnam Bank for Agriculture and Rural Development (AGRIBANK).
President Shavkat Mirziyoyev by his August 1 decree dismissed Saidkamol Khodjaev from post of the deputy chairman of the Central Bank “due to his moving to another job". No information is available about his new role.
"Our reserves are enough to cover the losses of some industries while they adapt to new conditions. The inflation will be the major concern. It is clear that the soum’s free float will prompt price rises for some goods, partly due to outflow of Uzbek goods, as a weaker soum will make Uzbek goods more competitive, " Uzbek Deputy Minister of Economy Shukhrat Ismailov said today at an international press club meeting.
An International Monetary Fund (IMF) mission led by Mr. Albert Jaeger visited Tashkent during July 17–24, 2017, to discuss economic developments and the authorities’ reform plans. At the conclusion of the visit, the mission issued the following statement.