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Central Bank of Uzbekistan reviews dynamics of national currency exchange rate

Finance Materials 3 August 2020 10:32 (UTC +04:00)
Central Bank of Uzbekistan reviews dynamics of national currency exchange rate

BAKU, Azerbaijan, Aug. 3

By Ilkin Seyfaddini - Trend:

Central Bank of Uzbekistan predicts a further slight weakening of the real exchange rate of Uzbek soum with the formation of a negative gap, Trend reports citing the Central Bank of Uzbekistan.

"The dynamics of the exchange rate of the Uzbek national currency against the US dollar was formed against the background of instability in the world markets, worsening economic situation, reduced foreign exchange earnings and weakening currencies of major trading partners," the message said.

As a result, in April 2020, the exchange rate of Uzbek soum was adjusted by 5.8 percent. In the period from May through June 2020, the exchange rate of the Uzbek soum remained relatively stable and the devaluation rate for this period was about 0.4 percent.

By the end of the second quarter of 2020, the real effective exchange rate of soum has become closer to its trend after the March 2020 strengthening, which was formed due to the weakening of currencies of Uzbekistan's main trading partners.

“The weakening of the real exchange rate of Uzbek soum in May and June 2020 was due to the seasonal decline in inflation, while maintaining relative stability of the nominal exchange rate of Uzbekistan's national currency,” the message said.

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