Tashkent, Uzbekistan (UzDaily.com) —  Uzbekistan Republican Currency Exchange (UzCE) has announced significant changes to its operations aimed at enhancing the efficiency and transparency of trading in the currency and REPO markets. These updates, implemented under the development strategy for 2024-2028, are designed to attract new participants and align the exchange’s activities with international standards.

Key changes have been introduced to the spot currency market and the REPO market. One of the major innovations in the currency market is the introduction of the EUR/UZS_TOD instrument, which allows transactions in the euro/Uzbek soum pair with clearing and settlement within one trading day (from 10:30 to 15:00, with settlement by 16:00).

This significantly simplifies the management of financial flows for market participants. For the RUB/UZS_TOD instrument, the deadlines for transferring Russian rubles to the UzCE account before submitting an order have been clarified.

The REPO market has also undergone substantial changes. Firstly, the formula for calculating the repurchase price has been updated in line with best global practices, reducing risks for participants. Secondly, more flexible terms have been introduced for off-market transactions, including the option to select periods ranging from 1 to 365 days, including intraday operations, and applying a discount rate from 0% to 30%. Now, negative, positive, and zero REPO rates are possible, depending on the agreement between the parties, providing participants with new opportunities for raising funds or acquiring government securities. The second part of the transaction is executed at 11:30 on the settlement day.

To increase liquidity and market stability, UzCE has improved conditions for market makers. Standardized REPO terms (1, 3, 7, 14 days, and intraday) are used in system trades, and the discount rate has been standardized at 5%. All transactions are conducted using a continuous double auction method, ensuring speed and transparency.

Experts believe that these changes will make the markets more attractive to investors, enhance liquidity and transaction efficiency, and strengthen UzCE’s position in the international arena. The reform is aimed at creating a more modern and competitive financial environment in Uzbekistan.