Uzbek Central Bank prepares roadmap to liberalize capital account
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Uzbekistan's Central Bank is preparing a roadmap to further liberalize the capital account, Chairman Timur Ishmetov told the Financial Times. The document is undergoing interagency approval and may be published later. The move follows the IMF's classification of the currency regime as free-floating this year.
Key Facts
- The Central Bank of Uzbekistan has prepared a roadmap outlining the sequence of capital account liberalization steps, Chairman Timur Ishmetov said.
- The roadmap is currently undergoing interagency approval and may be published after the process is completed.
- The International Monetary Fund classified Uzbekistan's exchange rate regime as free-floating this year.
- The Central Bank is consulting with the IMF on further opening the capital account.
- Uzbekistan aims to reduce inflation to a 5% target by 2027.
Capital Account Roadmap
Chairman Timur Ishmetov said the next phase of reforms after currency liberalization will be a broader opening of the capital account. The Central Bank has prepared a roadmap showing the sequence of liberalization steps, which is now undergoing interagency approval. Ishmetov expressed hope that the document will be published after approval to provide transparency for investors and the public. He stressed that the first step before expanding capital mobility should be building strong institutions, protective mechanisms, and a robust risk management system.
Monetary Policy Context
Ishmetov noted that Uzbekistan began a broad phase of economic liberalization about 10 years ago, removing restrictions on current account operations and ensuring free convertibility. The Central Bank is gradually transitioning to inflation targeting and aims to bring inflation to a 5% target by 2027. This year the IMF classified Uzbekistan's exchange rate regime as free-floating, which Ishmetov called one of the results of the reforms. The Central Bank is consulting with the IMF on further capital account opening, with the main task being to give investors more freedom while maintaining macroeconomic and financial stability.
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Uzbek Central Bank prepares roadmap to liberalize capital account
