Central Bank issued an additional 16.2 trillion soums into circulation last year 

In 2022, the Central Bank issued an additional 16.2 trillion soums of cash into circulation. Of these, 15.7 trillion soums fell on the period of a sharp increase in the need for cash in April-July, the CB stated in its review.

Reportedly, in 2022, the volume of bank cash turnover amounted to 700.3 trillion soums, and increased by 38.1% compared to 2021. In particular, the volume of cash receipts at the cash desks of banks amounted to 343.9 trillion soums, and the cash flow was 356.4 trillion soums.

In addition, in 2022, the issuance of cash through the cash desks of banks (including ATMs) increased by 39.5% (100.9 trillion soums) against last year. The main factor behind this growth was an increase in the amount of cash withdrawals from bank cards by 54.4 trillion soums (an increase of 57.2% compared to 2021), and an increase in the volume of operations for the purchase of cash foreign currency by banks by 18.1 trillion soums (the growth – 28.3%).

During this period, the population cashed out funds in the amount of 149.5 trillion soums, which accounted for 27% of the receipts on cards.

The difference between the funds received by banks and the demand for them was ensured by issuing additional funds into circulation by the Central Bank. In particular, in 2022, the CB issued an additional 16.2 trillion soums of cash into circulation. Of these, 15.7 trillion soums fell on the period of a sharp increase in the need for cash in April-July.

The total number of banknotes decreased significantly due to the growth in the share of banknotes with a large denomination in the structure of cash in circulation.

In particular, if the share of banknotes in the structure of cash issued into circulation during 2022, 100,000 soums in terms of size in soums reached from 34.8% to 41.6%, share of 20,000-soum banknotes – from 2.1% to 2.3%, then the share of 50,000-soum banknotes decreased from 34.2% to 27.5%, 10,000 soums – from 14.5% to 9.4%, 5,000 soums – from 12.7% to 6.5%, 1,000 soums – from 1.4% to 0.9%.

It is known that, in July 2022, banknotes with a new denomination of 200,000 soums were issued into circulation and at the end of the year their share in the structure of cash amounted to 11.6%.

As a result of the increase in the volume of banknotes with a large denomination, the number of banknotes put into circulation decreased by 20.9 million pieces.

“Reducing the number of banknotes in circulation serves to create convenience for the population in cash settlements, and for banks in cash operations, in particular, facilitating the processes of counting, sorting and packaging. At the same time, during 2022, for use in retail trade and the provision of paid services to the population in settlements as a return of change, new coins in the amount of 24.5 billion soums were additionally issued into circulation, and their share reached a total structure of cash 0.05%,” the report reads.

Also, in continuation of this work, on December 26, 2022, banknotes in the form of 1,000-soum coins were issued.