Central Bank of Uzbekistan to Continue Capital Liberalization

Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan will continue the gradual liberalization of capital account operations while maintaining macroeconomic stability as its primary objective, Central Bank Chairman Timur Ishmetov stated during a panel discussion at the Silk Road Finance & Technology Forum in Tashkent.

Ishmetov emphasized that providing macroeconomic stability remains a core focus for attracting investors. The regulator plans to further reduce inflation to reach its target rate of 5 percent next year. Simultaneously, the Central Bank intends to maintain a flexible, market-oriented exchange rate, adhering to the floating exchange rate regime recently recognized by the International Monetary Fund.

Capital account liberalization will proceed gradually and in a structured sequence under a roadmap developed with IMF support. The regulator aims to increase transaction flexibility while strengthening financial institutions, protective safeguards, and risk management systems to protect overall stability.

Additionally, the Central Bank is implementing a three-year roadmap to align banking sector regulation with international standards following a 2025 Financial Sector Assessment Program (FSAP) conducted by the IMF and World Bank. By the end of this three-year period, the regulator expects to implement Basel III requirements and complete the transition of all banks to International Financial Reporting Standards (IFRS).

The Central Bank also plans to continue reducing state ownership in the banking system, which has decreased from 85 percent to approximately 60 percent in recent years.