Central Bank of Uzbekistan to expand investments in foreign government bonds

The Central Bank of Uzbekistan has already purchased U.S. Treasury securities but is now considering investments in the debt instruments of other countries. The regulator emphasized that the plan involves only government bonds, not corporate stocks.

Sanjar Valiev Photo: Central Bank

On 19 September, Sanjar Valiev, Head of the International Reserves Management Department at the Central Bank, announced at a media dialogue that the bank may expand purchases to include government bonds of developed economies.

According to him, diversification of reserves began with the acquisition of U.S. Treasury bonds due to their high liquidity. “Going forward, we plan to consider the securities of other developed countries as well,” he noted.

Valiev clarified that the Central Bank is focused solely on government bonds and is not looking into purchasing foreign corporate shares.

In May 2024, the regulator for the first time invested $35 million in foreign government bonds. Later, in October, it purchased an additional $65 million worth of U.S. Treasury securities.

Uzbekistan’s international reserves exceeded $50 billion by the end of August – a record high since monitoring began in 2013. Of this amount, more than $40 billion (nearly 80%) is held in gold, with Central Bank vaults containing 11.8 million troy ounces (367 tons). The foreign currency portion of reserves stands at $9.45 billion. Securities account for 2% of reserves, or just over $1 billion.