Uzbekistan’s national currency appreciates as export earnings and remittances rise

The national currency strengthened by 7 percent between January and October this year, according to a report by the Central Bank of Uzbekistan.

During this period, exchange rate dynamics were shaped by supply and demand factors in the domestic currency market, broader macroeconomic trends and external economic conditions.

“Significant growth in foreign currency inflows through export channels, foreign loans and remittances, as well as an increase in foreign investment and a relative stabilization of imports, were the main factors supporting the national currency in the domestic market,” the report stated.

Foreign currency supply formed from the export earnings of business entities rose by 18 percent over the 10-month period, reaching $14.5 billion. Of this amount, $8.1 billion, or 56 percent, was sold on the domestic market.

Foreign currency supply generated from export earnings rose by 18 percent over the 10-month period, reaching $14.5 billion. Of this amount, $8.1 billion, or 56 percent, was sold on the domestic currency market, an increase of 23 percent or $1.5 billion compared to the same period last year.

Banks sold $7.3 billion on the domestic market using foreign loans attracted to the country (62 percent or $2.8 billion more than in the same period last year).