Uzbekistan's Central Bank Diversifies Reserves Beyond US Treasuries
The Central Bank of Uzbekistan plans to diversify its international reserves beyond US Treasury securities. According to Abror Mirzo Olimov, Deputy Chairman of the Central Bank, this move aims to strengthen diversification and reduce dependence on a single asset class.
Olimov stated that gold will remain a strategic reserve asset for the country but plans to expand its range of investment instruments to include sovereign bonds, securities issued by supranational organizations, and other fixed-income instruments. The regulator wants to move beyond US Treasury securities and shift to highly liquid assets that can help reduce risks.
The Central Bank is working on strategic asset allocation, investment policy, and strategy with international financial institutions. Olimov noted that diversification should take into account each country's liabilities, intervention needs, market structure, acceptable level of risk, and institutional capacity.