BAKU, Azerbaijan, June 12
By Ilkin Seyfaddini - Trend:
Central Bank of Uzbekistan announced about stabilization of exchange rate on June 11, 2020, Trend reports with reference to the bank.
In April, Uzbek soum devalued by 5.8 percent due to external and internal factors. The main reasons were a balance between demand and supply of currency; a significant increase in remittances; and the fact that population began selling more dollars than buying, the message said.
The bank did not disclose forecasts or plans for the exchange rate, but noted that by the end of the first half of the year, it is expected to gradually exhaust the effects of the April exchange rate adjustment to external conditions and the pandemic on the price level.
The bank also noted that despite the gradual easing of quarantine measures, there was still uncertainty about the outlook for inflation rate in the economy due to bilateral factors - on the one hand, downward because of weaker aggregate demand, and upward due to limited supply.
In addition, the main risks are the longer recovery of the economies of major trading partners, and the timing and degree of adaptation of businesses to new economic realities.
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