Uzbek Central Bank Replaces 7-Day Bonds With Repo Auctions

Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan began using seven-day repo auctions as its primary liquidity absorption instrument from 16 July 2026, replacing auctions for seven-day Central Bank bonds.

The regulator said the decision was made in line with recommendations from the International Monetary Fund, the European Bank for Reconstruction and Development, and international consulting firm OG Research.

Under the new framework, the value of bonds used as collateral in repo transactions will be determined by the Central Bank based on the yield curve.

The Central Bank has also abolished the requirement that bonds used in repo transactions must mature at least five calendar days after settlement of the second leg of the repo agreement.

In addition, restrictions on the secondary market trading of bonds acquired by banks through repo auctions during the term of the transaction have been removed.

The regulator has also gained the ability to conduct fine-tuning repo auctions to smooth unexpected fluctuations in liquidity across the banking system.

The Central Bank has further introduced accounting procedures governing the issuance and circulation of its bonds.

According to the regulator, the changes are aimed at improving the management of excess liquidity in the banking system and strengthening the monetary policy transmission mechanism.