Central Bank reports drop in cash circulation to 20.7%

In the first nine months of 2024, the volume of cash circulating through banks reached 727 trillion UZS, representing a 23% increase compared to the same period last year. The Central Bank highlighted that this growth occurred without significant changes in the sources of cash income for banks or the purposes for which cash was distributed.

The increase in cash flow is attributed to rising household incomes and purchasing power, with the amount of cash in circulation up by 16% since the start of the year. From January to September 2024, total cash inflows (including both cash and terminal transactions) amounted to 605 trillion UZS, a 27% increase from the same period in 2023.

The volume of cash turnover through banks during this period totaled 727 trillion UZS, with 360 trillion UZS in cash inflows and 367 trillion UZS in cash withdrawals. This reflects a 23% increase compared to last year.

A key factor driving this growth was the 30 trillion UZS increase in cash withdrawals from bank cards and the 21 trillion UZS rise in foreign currency purchases by banks from the public.

Additionally, funds deposited into bank cards reached 740 trillion UZS in the first nine months of 2024, marking a 1.3-fold increase over the same period last year. Cash withdrawals from these cards amounted to 167 trillion UZS.

In response to higher demand for cash due to increased economic activity in the spring and summer, the Central Bank introduced an additional 8 trillion UZS in cash into circulation. By October 1, the share of cash in the total money supply had fallen to 20.7%.