Uzbekistan's central bank said on August 10 that it may intervene to prevent any excessive depreciation of the Uzbekistani som (UZS).
The UZS has come under pressure given the depreciation of other currencies such as the Russian ruble, the regulator noted. The weakening of the currencies of trade partners—among which Russia is the second biggest, behind China—has adversely affected inflows of FX through trade and remittances, it added in a statement.
The USD exchange rate rose to a record high of between UZS 12,130 to UZS 12,135 per dollar on August 10. Thus, the US currency rose by more than UZS 400 on the day, the sharpest jump seen in recent years. By the end of the day, the dollar was trading at around UZS 12,070.
Last March, when a similar scenario unfolded, the central bank permitted banks to set the exchange rate themselves and change it during the day.
Don’t just follow the news—understand it.
The IntelliNews PRO service includes access to reports, exclusive market data, and more news that decision-makers care about. Stay ahead of the market with IntelliNews PRO.
Sign Up NowRelated Articles
Eurasian Development Bank redeems €286mn Eurobond
The Eurasian Development Bank (EDB) said on March 26 it had fully redeemed a five-year Eurobond, meeting all obligations to investors at maturity. The bank paid a total of €286mn, covering both ... more
Georgia’s TBC Bank weighs up separate IPO for TBC Uzbekistan digital bank
London-listed TBC Bank Group PLC (LON: TBCG) is weighing up conducting a separate initial public offering (IPO) for its TBC Uzbekistan digital bank business. Reuters on February 24 ... more
IndiGo cancels Central Asian flights until late February over Iran tensions
Indian budget carrier IndiGo has cancelled all flights to and from Tbilisi, Almaty, Baku and Tashkent until February 28 due to the developing situation around Iran, the airline announced on February ... more