Baku, Azerbaijan, Aug 21
By Fakhri Vakilov-Trend:
In July, the demand for national currency in Uzbekistan increased by 34 percent and amounted to $1.36 billion, Chairman of the Central Bank Mamarizo Nurmuratov announced at a press conference in Tashkent, Trend reports with reference to the Central Bank of Uzbekistan.
He added that the announced cancellation of benefits on customs payments, which will be in force starting from October 1, 2019, can be considered as one of the factors affecting the growth in demand.
“There is an increase in the intention of entities with customs privileges to reserve imported raw materials and products. As a result, from the second half of July of this year and particularly in August, the rate of the soums began to fall rapidly. In particular, during the first 19 days of August, the dollar exchange rate against the sum increased by 4.8 percent from 8,714 soums rose to 9,129 soums for one dollar, "said Nurmuratov.
He added that the most painful aspect of the changes in the exchange rate is its effect on domestic prices. On the other hand, the Central Bank is confident that maintaining the exchange rate to reduce inflation in the future may lead to even more serious consequences, he noted.
Nurmuratov said if Uzbekistan eradicate monopoly, corruption and increase investment attractiveness, the free competition that has arisen in the domestic market will become the basis for removing the economy from inflation.
To accomplish these tasks, the Central Bank will concentrate on ensuring that credit growth rates are consistent with economic growth rates and balance of the state budget.
Moreover, it will maintain the value of savings in the economy by ensuring that interest rates are consistent with market principles and decrease the level of dollarization in the economy, Nurmuratov said.
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