Uzbekistan Eases Rules on Use of Purchased Foreign Currency

Tashkent, Uzbekistan (UzDaily.uz) — The Central Bank of Uzbekistan has amended the country's foreign exchange regulations, simplifying the procedure for businesses to use foreign currency purchased on the domestic market. The amendments were registered by the Ministry of Justice on 16 July under No. 3281-6.

The changes concern Clause 28 of the Rules on Foreign Exchange Operations, which governs the use of funds held in special foreign currency accounts.

Previously, foreign currency credited to such accounts could only be used for the purpose specified in the application submitted when purchasing the currency.

If a company needed to use the purchased currency to fulfil obligations under a different contract, the existing rules required it to first sell the currency back to a commercial bank and then repurchase it for the new purpose.

Under the revised regulations, businesses are now allowed to change the purpose for which foreign currency purchased on the domestic foreign exchange market is used. According to the Ministry of Justice, the amendments are intended to provide additional convenience for entrepreneurs and improve the flexibility of foreign exchange transactions.

Earlier, in June, Central Bank Chairman Timur Ishmetov approved separate amendments governing foreign exchange operations related to capital movements.

Under those changes, individuals may transfer up to US$10,000 abroad each year without prior approval to contribute to the charter capital of foreign companies or acquire equity stakes in them. Transfers to overseas brokerage and investment accounts are permitted only through licensed investment intermediaries operating in Uzbekistan.

For state-owned enterprises and their subsidiaries, annual overseas investment is capped at US$100,000, including investments in foreign companies and the establishment of branches, representative offices and trading houses abroad. For private companies, the corresponding annual limit is US$200,000.