Central Bank of Uzbekistan is to fight against the dollarization

On August 17, the Board of the Central Bank of the Republic of Uzbekistan decided to amend the procedure and rules for the calculation and deposit of mandatory reserves of commercial banks into the Central Bank.

Within the framework of step-by-step measures of improvement for the effectiveness of monetary policy instruments, the Council of the Central Bank of Uzbekistan  made changes in the procedure and standards of mandatory reserves as of October 1 of this year. 

In particular:

- the procedure for the formation of mandatory reserves in the national currency is established, regardless of the currency of obligations attracted by commercial banks;
- the norms of deposits of legal entities and individuals are consolidated;
- the mandatory reserve requirements for legal entities in the national currency are reduced;

There are relatively high standards of mandatory reserves for deposits in foreign currency.

These changes are:

- to increase the attractiveness of interest rates on deposits in national currency;
- to reduce the level of "dollarization" in the economy;
- increase of efficiency of market mechanisms of regulation of liquidity in the banking system.

At the same time, according to the decision, the Central Bank will make appropriate changes and additions to its instruments to increase the sensitivity of monetary policy in the further, based on the dynamics of the inflation forecast and the inflation rate in the economy.