Central Bank of Uzbekistan to Disclose Currency Intervention Strategy

Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan plans to publish its foreign exchange intervention strategy for the first time and reveal the sequence for further capital account liberalization, Central Bank Chairman Timur Ishmetov announced at the Silk Road Finance & Technology Forum panel discussion in Tashkent.

According to Ishmetov, the regulator aims to increase operational transparency and enhance communication amid global external factors, including ongoing international conflicts. In July, the International Monetary Fund completed an assessment of the Central Bank’s transparency using the Central Bank Transparency Code methodology, with the results set to be published.

A primary step in increasing transparency will be the publication of the intervention strategy. Ishmetov clarified that while Uzbekistan operates under a floating exchange rate recognized by the IMF, the Central Bank remains active in the foreign exchange market as a major gold purchaser. The regulator sells foreign currency to sterilize excess national currency liquidity created when buying gold from domestic producers.

Ishmetov stated that the intervention strategy is being finalized for publication to explain the regulator's market presence to market participants, emphasizing that interventions occur strictly due to gold purchasing operations rather than to target a specific exchange rate.

Additionally, the Central Bank intends to outline and publish the sequence of upcoming reforms regarding capital account liberalization to address ongoing market questions.