Uzbekistan’s domestic currency market sees record supply in 2024

Banks in Uzbekistan acquired $13.2 billion in foreign currency from citizens between January and October 2024, according to a report by the Central Bank.

The data reveals that the total volume of foreign currency transactions between banks and individuals reached $20.9 billion during the ten-month period. This marks a $3.3 billion (19%) increase compared to the same period in 2023.

Of the total, citizens sold $13.2 billion worth of foreign currency to banks, reflecting a significant annual growth rate of 32%. Meanwhile, foreign currency purchases by citizens totaled $7.7 billion, a modest annual increase of 2%.

This disparity resulted in an excess supply of $5.5 billion, meaning that citizens sold substantially more foreign currency than they bought. The Central Bank highlighted that this surplus serves as an additional supply source in the domestic currency market.

Analysts believe this trend indicates a growing preference among citizens to exchange foreign currency for the national currency, likely driven by economic factors such as inflation control and currency stability.