Starting from February, the Central Bank of Uzbekistan will daily update the currency rate based on average prices on the stock exchange.
According to Deputy Chairman of the Central Bank Behzod Khamroev, currency exchanges will work daily from 10:00 to 15:00 (GMT+5). At the end of the working day, the Central Bank will update exchange rates on a daily basis, based on the average prices on the stock exchange.
Khamroev also noted that one of the main plans of the Central Bank this year was to reduce the dependence of the national currency on foreign currency and ensure that the inflation rate did not exceed 10%.
“Entrepreneurs will also be able to buy currency directly by ordering online from commercial banks,” he added.
The CBU also mentioned the transition from the current method of fixing to the method of continuous auction (matching) in determining the exchange rate in December 2020.
It was noted that until now, foreign exchange trading in the domestic foreign exchange market of Uzbekistan was carried out by the “fixing” method. Most developing countries, as well as all countries that have switched to inflation targeting, bid on the basis of continuous “matching” auctions.
“When using the continuous auction method, foreign exchange trading in the domestic foreign exchange market will last longer, buyers and sellers will trade at different rates at mutually agreed orders, as a result of which the role of market participants in determining the exchange rate will increase,” the message said.
The CBU added that this method would make it possible to more widely implement market principles in the formation of the exchange rate, ensuring its formation entirely on the basis of supply and demand, and also increase its flexibility to changes in macroeconomic conditions. (Trend/Business World Magazine)