Central Bank names three reasons for high inflation in Uzbekistan
Baku, Azerbaijan, Oct. 12
By Fakhri Vakilov-Trend:
Chairman of Uzbekistan’s Central Bank Mamarizo Nurmuratov explained the high level of inflation in Uzbekistan by liberalization of prices, investment hunger and free conversion , Trend reports citing Uzbek media.
Nurmuratov made the remarks at the 23rd plenary meeting of the Senate of the Parliament on Oct. 11. He added that Uzbekistan has consciously committed high inflation over the past two years.
“First, in three years, we have implemented the reforms that other states have carried out for 30 years. Namely, measures to liberalize prices have been taken only in recent years,” said the head of the Central Bank.
The head of the Central Bank called "investment hunger" which was formed after 27 years as the "second objective reason" for the price increase. According to him, on behalf of the president, investment activity is promoted in the regions, but this requires additional funds and resources to the economy.
The third reason is the liberalization of the foreign exchange market. As the head of the regulator noted, in all countries where the foreign exchange market was freed from state restrictions, inflation increased several times.
The high inflation rate negatively affects both the economy and the population, in connection with which the Central Bank plans to switch to inflation targeting in the fourth quarter of 2019 (a set of monetary measures taken by government bodies to control inflation in the country).
“We are aiming to switch to a single-digit inflation figure from 2021, and from 2023 to achieve 5-6 percent of inflation based on the inflation targeting mechanism,” said Nurmuratov.
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