The dynamic of the exchange rate of the national currency against the US dollar was formed against the background of instability in world markets, a worsening economic situation, a decrease in foreign exchange earnings and a weakening of the currencies of the main trading partners, the Central Bank reports. 

Photo: KUN.UZ

As a result, in April there was an exchange rate adjustment of 5.8%. In May-June, the exchange rate remained relatively stable and the level of devaluation during this period amounted to about 0.4%

By the end of the second quarter, the real effective exchange rate of the soum began to converge to its trend after the March strengthening, which was formed due to the weakening of the currencies of Uzbekistan’s main trading partners. 

At the same time, as the regulator notes, the weakening of the real exchange rate in May and June occurred as a result of a seasonal decrease in inflation, while maintaining the relative stability of the nominal exchange rate of the national currency. 

Taking into account the pronounced seasonality of monthly inflation in the republic, a further slight weakening of the real exchange rate of the soum is expected in the coming months with the formation of a negative gap, the CB notes.