Individuals Sold US$21.7 Billion of Currency to Banks in Uzbekistan’s Domestic Market — 40% More than in 2024

Tashkent, Uzbekistan (UzDaily.com) — According to the Central Bank of Uzbekistan’s annual review of the foreign exchange market, in 2025, the supply of foreign currency from legal entities on the domestic market grew significantly faster than their demand.

During the year, corporate demand for foreign currency increased by 24% compared to 2024, while supply grew by 36%. Currency generated from exporters’ revenues amounted to US$18.0 billion, of which US$9.8 billion, or 40%, was sold on the domestic market — US$1.6 billion (19%) more than in 2024.

In addition, banks sold US$9.7 billion on the domestic market from external loans, exceeding the previous year’s figure by US$4.0 billion (69%). Currency purchased to finance imports accounted for 63.7%, while enterprises’ own foreign currency resources covered 24.0% of import needs, remaining at last year’s level.

Most currency funds were directed to importing equipment and raw materials (50%), repaying external loans (28%), purchasing consumer goods and medicines (17%), repatriation of foreign investors’ earnings (2%), and other purposes (3%).

Individuals also became a significant source of foreign currency supply, selling US$21.7 billion to commercial banks — 1.4 times higher than in 2024 — and purchasing US$12.0 billion, 27% more than the previous year. Overall, household currency supply exceeded demand by US$9.7 billion, also 1.4 times higher than in 2024.

The main source of foreign currency inflows from households was international money transfers, which amounted to US$18.9 billion, up 28% compared to 2024, while US$2.6 billion was sent abroad, US$138 million less than the previous year.

Since the beginning of 2025, the national currency has strengthened by 6.9%, with daily volatility doubling. Throughout the year, the exchange rate was influenced by domestic supply and demand, macroeconomic trends, and external factors. The average rate stood at 12,575 soums per US dollar, with a maximum of 13,004 soums and a minimum of 11,881 soums.

Bilateral volatility rose from 0.14% to 0.28%, approaching the level of flexible currencies in leading economies. The number of market makers increased from two to five by year-end, contributing to greater market activity.

The strengthening of the national currency positively affected macroeconomic indicators. The sum-denominated deposit portfolio grew by 44% to 240 trillion soums, inflation expectations among households and businesses fell to 11.5% and 11.1%, respectively, while the dollarization of loans decreased from 41% to 38%, and deposits from 26% to 22%. Total foreign currency sales by bank clients rose by 35%, reaching US$47 billion, while external debt servicing costs fell to 6–7%.

To ensure market transparency, the Central Bank developed a 2026 Communication Policy Plan, which provides for regular public updates on key trends, the publication of analytical materials and infographics, preparation of audio and video podcasts, roundtables with trade companies, economists, and media representatives, as well as quarterly meetings of the Foreign Exchange Market Expert Group.

Continuation of these measures is expected to strengthen trust in the national currency, increase the attractiveness of sum-denominated assets, and support macroeconomic stability.