Uzbekistan's Central Bank to Reveal Foreign Exchange Intervention Strategy
The Central Bank of Uzbekistan plans to increase transparency by publishing its foreign exchange intervention strategy for the first time, according to Chairman Timur Ishmetov. The move aims to enhance communication amid global external factors and ongoing international conflicts.
Ishmetov stated that the regulator operates under a floating exchange rate recognized by the IMF but remains active in the foreign exchange market as a major gold purchaser. When buying gold from domestic producers, the Central Bank sells foreign currency to sterilize excess national currency liquidity.
The intervention strategy will explain the regulator's market presence to market participants and clarify that interventions occur strictly due to gold purchasing operations rather than targeting a specific exchange rate. The Central Bank also intends to outline and publish the sequence of upcoming reforms regarding capital account liberalization, addressing ongoing market questions.