Central Bank of Uzbekistan does not plan to change the nominal banknote series – CB Chairman

Uzbekistan does not set the task to conduct a denomination of the national currency. This was stated on Tuesday by the chairman of the Central Bank of the republic Mamarizo Nurmuratov, Kun.uz correspondent reports.

According to him, the procedure must be approached very carefully, as this is a “delicate matter”, although from a technical point of view it is not difficult to carry it out.

“Denomination is usually carried out when it is possible to stabilize the macroeconomic situation, first of all – inflation. Denomination is a technical matter and it is very easy to conduct. Also, it can be painless, as it happened in Belarus. We do not set such goal yet. The existing denominations are quite convenient and meet requirements of the population in terms of use in cash payments,” Mr. Nurmuratov said.

Earlier, following president Mirziyoyev’s instructions to issue 100,000-soum banknotes, reports appeared on the media that there might be denomination of the national currency. However, the Central Bank refuted the rumors.

A denomination is a type of monetary reform with a change in the denomination of the currency, as a rule, downward. It is usually used to combat hyperinflation.

In the event of a denomination, there is a full or partial replacement of banknotes so that several hundred or thousands of old units of currency are equivalent to one new unit. All this can lead to changes in prices, cost of services provided and recalculation of tariffs.