Uzbek Central Bank to publish FX intervention strategy soon
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Uzbekistan's Central Bank will publish its foreign exchange intervention strategy soon, Chairman Timur Ishmetov said at the Silk Road Finance & Technology Forum in Tashkent on August 24. The regulator aims to show that its currency market operations are tied to gold purchases, not to holding the exchange rate. The bank also plans to release the IMF's transparency assessment and the sequencing of capital account liberalization.
Key Facts
- Central Bank Chairman Timur Ishmetov announced the upcoming publication at the Silk Road Finance & Technology Forum in Tashkent on August 24.
- The strategy will explain that interventions are conducted in connection with gold purchase operations, not to hold the exchange rate.
- The Central Bank plans to publish the results of the IMF's Central Bank Transparency Code assessment completed in July.
- The regulator will also announce the sequence of further capital account liberalization steps.
Intervention Strategy
The Central Bank of Uzbekistan is finalizing a foreign exchange intervention strategy and will publish it soon, Chairman Timur Ishmetov said at the Silk Road Finance & Technology Forum in Tashkent on August 24. The strategy aims to clarify that the bank's currency market participation is driven by its role as a major gold buyer, which requires selling large volumes of foreign currency to absorb excess liquidity in the national currency. Ishmetov stated that the interventions are not intended to hold the exchange rate, but are linked to gold purchase operations.
Transparency Commitments
The Central Bank plans to increase the transparency of its operations and communication with the market. In July, the International Monetary Fund completed an assessment of the Central Bank of Uzbekistan under the Central Bank Transparency Code, and the results are planned for publication. Ishmetov said the bank requested the technical assistance to identify its current stage and evaluate how to improve communication, adding that the bank is fully committed to implementing announced reforms and has nothing to hide.
Capital Account Liberalization
The Central Bank will also announce the sequence of further capital account liberalization steps. Ishmetov said the bank is finalizing the sequencing of these reforms and will publish it, continuing to focus on transparency while fulfilling its core mandate. The regulator plans to liberalize the capital account gradually while simultaneously strengthening institutions, protection mechanisms, and risk management systems.
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Uzbek Central Bank to publish FX intervention strategy soon
