Export revenues and remittances drive currency market surplus in Uzbekistan

The regulator reported that while demand for foreign currency among legal entities rose by 24% compared to 2024, supply expanded at a faster pace of 36%, creating a substantial surplus in the market.

Export revenues and foreign loans boost supply

Foreign currency supply generated through export revenues increased by 18% to $18 billion in 2025. Of that amount, $9.8 billion was sold on the domestic foreign exchange market – 19% more than the previous year.

Commercial banks also significantly expanded foreign currency sales through external borrowing. Sales financed by foreign loans surged by 69%, reaching $9.7 billion.

In the structure of import financing, the share of currency conversion on the domestic market remained broadly stable at 63.7%, unchanged from 2024. Meanwhile, the share of imports financed from companies’ own foreign currency resources declined to 24%.

The bulk of purchased foreign currency was directed toward productive and financial obligations. According to the Central Bank:

• 50% was used for importing equipment, goods, and raw materials for production;
• 28% went toward servicing and repaying foreign currency loans;
• 17% financed imports of consumer goods and pharmaceutical products;
• 2% was allocated for repatriation of foreign investors’ income;
• 3% was used for other purposes.

Households increase net sales

Households played a major role in strengthening currency supply. In 2025, individuals sold $21.7 billion worth of foreign currency to banks – 1.4 times more than in 2024. At the same time, their purchases of foreign currency increased by 27%, exceeding $12 billion.

As a result, the gap between foreign currency supply and demand among households reached $9.7 billion, also 1.4 times higher than the previous year.

Cross-border remittances remained a key source of inflows. Transfers into Uzbekistan rose by 28% to $18.9 billion, while outbound transfers declined by 5% to $2.6 billion.

Stronger UZS amid growing inflows

The Central Bank attributed the strengthening of the national currency in 2025 to several factors: increased export revenues, expanded foreign borrowing, higher remittance inflows, growing foreign investment, and relatively stable import dynamics.

“The significant increase in foreign currency flows through exports, foreign loans, and remittance channels, along with rising foreign investment activity and relative stabilization of imports, were among the factors contributing to the appreciation of the exchange rate in the domestic foreign exchange market,” the Central Bank said in its summary.

Despite a slight depreciation of more than 1% in December, the UZS strengthened by 6.93% against the U.S. dollar over the year in nominal terms – an appreciation of nearly UZS 900. By the end of 2025, the exchange rate stabilized slightly above UZS 12,000 per dollar.

The data indicate that robust external inflows and cautious import growth created sustained upward pressure on the national currency throughout the year.