Total trade volume on the Uzbek Republican Currency Exchange reaches a record level of 706.79 trillion soums
Tashkent, Uzbekistan (UzDaily.com) -- It should be noted that today, operations are carried out on the platforms of the Uzbek Republican Currency Exchange in the following main segments of the financial market of Uzbekistan:
- currency market;
- government securities market;
- money market;
- derivatives market (starting from 2022).
The total trading volume in the UzRCE in 2022 reached a record level - 706.79 trillion soums. The growth compared to the corresponding indicator of the previous year amounted to 81.60%. This was reported by the information service of UzRCE.
Spot transactions are carried out on the market with currencies such as the US dollar, euro, Russian ruble and Chinese yuan. Bidding is carried out on the Rhombus electronic platform developed by UzRCE specialists using modern methods of call-auction and two-way continuous auction.
As of the end of 2022, the total trading volume on the exchange currency market amounted to 338.34 trillion soums, which is 1.5 times more compared to the corresponding indicator of the previous year.
In order to further develop the foreign exchange market of the republic, create additional amenities for participants in the UzRCE exchange trading in 2022, a number of strategic events were carried out, including:
1. In order to increase the activity of commercial banks in the formation of the national exchange rate in the domestic foreign exchange market, in accordance with market principles, the institution of market makers has been introduced.
The introduction of the market maker activity contributed to ensuring daily uninterrupted liquidity in the market, increasing the volume and scale of transactions, and also became the basis for further improvement of the mechanism for the formation of market indicators based on the exchange rate.
2. In addition, in order to effectively manage risks, the activity of a central counterparty has been introduced in the UzRCE foreign exchange market.
Acting as a central counterparty, UzRCE assumes the obligation to ensure the execution of transactions concluded on the foreign exchange market.
Also, in order to ensure the fulfillment of obligations under transactions concluded at the UzRCE, a Guarantee Fund was created.
3. At the same time, an effective default management system and the activities of liquidity providers, closely related to the functions of a central counterparty, have been introduced at UzRCE. As a result, risk management mechanisms have been expanded.
In the event of a default situation on foreign currency purchase and sale transactions, a commercial bank, which is a liquidity provider, is obliged to act as a party to the transaction and conclude a deal with the UzRCE on the purchase and sale of national and foreign currencies.
This, in turn, is an important step towards bringing the default management system in the foreign exchange market to a qualitatively new level.
To date, on the interbank money market, through a special electronic platform of the UzRCE, bidding is carried out to attract and place free cash from commercial banks for a period of 1 day to a year, as well as deposit auctions of the Central Bank with commercial banks.
Trading on this market provides market participants with an additional opportunity to instantly raise and place funds in short-term assets. The positive dynamics of trading volumes in recent years indicates the attractiveness of money market instruments.
In 2022, the total trading volume in this market reached a record level of 270.61 trillion soum, an increase of almost 93% compared to last year.
Government securities market
In this market, through the electronic trading and depository platform of the UzRCE, auctions are organized for the initial placement and secondary circulation of treasury bills and bonds of the Ministry of Finance of the Republic of Uzbekistan, bonds of the Central Bank, and REPO transactions are also carried out.
In 2022, this market placed government securities in the amount of 87.29 trillion soums. Compared to 2021, this figure has increased by 3.5 times.
In 2022, for the first time, government securities with a maturity of 10 years were placed at auctions of the UzRCE. This makes it possible to diversify the range of financial instruments, form a "benchmark" in the market, and expand the investor base by attracting insurance companies and pension funds.