IMF reclassifies Uzbekistan's exchange rate as “floating”

The International Monetary Fund (IMF) has reclassified Uzbekistan's de facto exchange rate regime from "crawl-like" to "floating", acknowledging greater exchange rate flexibility and recommending that the country maintain the current framework to strengthen its resilience to external shocks.

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The change was announced in the IMF mission's report following its 2026 visit to Uzbekistan.

According to the report, the IMF recognized Uzbekistan's de facto exchange rate as operating under a floating regime effective from May 8, 2025. The decision followed an increase in exchange rate flexibility that began in April 2025.

The IMF said maintaining a floating exchange rate would help the economy better absorb external shocks, preserve international reserves, encourage the hedging of foreign exchange risks, and support the effectiveness of the country's inflation-targeting framework.

To reinforce the regime, the IMF recommended implementing technical assistance proposals prepared by its Monetary and Capital Markets Department to improve the functioning of Uzbekistan's foreign exchange market.

Among the recommendations is the introduction of a clearly defined, risk-based foreign exchange intervention strategy aimed at reducing discretionary interventions by the Central Bank.

The report also notes that deeper liquidity in the foreign exchange market would enable more efficient liquidity management while reducing sterilization costs.

According to the IMF, these measures would further strengthen the effectiveness and credibility of Uzbekistan's exchange rate framework.