Uzbekistan to issue gov't securities first time in 6 years
Baku, Azerbaijan, March 29
By Fikret Dolukhanov – Trend:
Uzbekistan will resume issuing government securities for the first time since 2012 in accordance with the State Concept of Development and Implementation of Monetary Policy published by the Central Bank of Uzbekistan on March 29.
Uzbekistan had already issued government securities back in 1996-2011, but suspended the activity in 2012.
“In practice, a constantly and steadily functioning government securities market is not only a way to cover the budget deficit, but also an important tool in development of the country’s financial market. There are currently all possibilities for gradual placement and servicing of government securities in the republic,” the document says.
According to the information, the Central Bank will closely cooperate with the Finance Ministry to resume issuing of the government securities in 2018 in order to activate operations on the open market. Work will also continue on development and implementation of a number of regulatory and legal acts on further improvement of the regulating body’s operations.
The concept additionally provides for launch of a unified electronic platform in 2018 for the interbank financial resources market to provide short-term liquidity.
According to experts of the Central Bank, the measure will allow to compile information on free funds of commercial banks in a single platform, create an opportunity for market participants to observe the dynamics of interest rates and thereby ensure the formation of the interest rates in line with the market mechanisms.
The unified electronic platform will also expand the possibility of the Central Bank in promptly influencing short-term interest rates through market transactions and will increase the influence of the interest channel of the transmission mechanism of monetary policy.