Deputies: State bodies will not be allowed to intervene in foreign exchange transactions, the rates will be regulated by a market mechanism

On July 22, a regular meeting was held at the Legislative Chamber of Oliy Majlis, the parliamentarian press service reports.

During the event, deputies discussed the draft law on introducing amendments and addenda to the law of the Republic of Uzbekistan “On currency regulation”.

People’s representatives noted that this bill defines the priority of economic measures in implementation of state policy in the field of currency regulation, preventing unlawful intervention of state bodies in currency operations, and norms providing for the use of market mechanisms only in determining the exchange rate. Also, some of the norms are again being radically reviewed due to the loss of their relevance in the current legislation.

According to deputies, the possibility of free purchase and sale of foreign currency, determining the exchange rate of the national currency using market mechanisms will increase the competitiveness and profitability of local products in the domestic and foreign markets, improve the investment and business climate, increase foreign direct investment, attract new technologies and knowledge of business entities, expand export opportunities.

In addition, deputies reviewed the draft law on introducing amendments and addenda to the law of the Republic of Uzbekistan “On banks and banking activities”.

As noted, some of the norms of the current law do not meet international standards, as a result of the lack of authority by the Central Bank to streamline and control the activities of banks, the system has difficulty in eliminating the existing shortcomings and errors.

The proposed draft law, which includes norms of direct action, developed on the basis of advanced foreign experience, generally accepted norms and standards, improves the procedure for obtaining prior authorization for banking activities, registration and licensing of banks, as well as the procedure for buying shares of a bank by investors without the Central Bank’s permission.

It also determines the reorganization of banks, the basis of license revocation, termination of activities and liquidation of the bank, including termination in a voluntary and compulsory form, powers and obligations of the liquidation commission. The system of banking regulation is being improved.

Deputies said that adoption of this bill would increase the stability of the banking system of the republic, create a healthy competitive environment between banks, protect the rights and interests of banking service users.