Uzbekistan will no longer require exporters to convert 25% of their foreign currency revenues from overseas sales into the national currency from August 1, the Uzbek president's press office said on July 28.

The statement said the move is another step towards liberalising the currency market, and will also serve to stimulate exports. For the time being, however, the changeover allows authorities to maintain official rates, while providing both foreign and domestic companies with the benefits of the black market rate.

Uzbekistan is preparing to abolish the black market rate of the Uzbek som, which has stood in the way of foreign investment and fuelled high inflation.

While the official rate of the som is currently set at UZS4,000 per dollar, the bourse market rate and the black market rate are at UZS8000-UZS9,000 to the dollar. Exporters have been required to sell a quarter of their foreign currency at the official rate, while importers have only been able to buy currency at the unofficial rate. As preparations last month began for the currency reform, the country allowed a limited number of banks and companies to operate at the bourse market rate, while slowly adjusting the official rate by allowing it to gradually devalue.  

The black market rate drives rapid inflation in the country. According to official statistics, the inflation rate in 2016 was 5.7% compared to 5.6% in 2015, with the targeted inflation rate projected at 5.7-6.7%. However, independent analysts estimate inflation to be in the double digits.