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Uzbekistan’s Central Bank to place bonds on republican currency exchange

Finance Materials 20 January 2021 11:40
Uzbekistan’s Central Bank to place bonds on republican currency exchange

BAKU, Azerbaijan, Jan. 20

By Klavdiya Romakayeva - Trend:

The central bank announced the placement of one million bonds in the trading system of the Uzbek Republican Currency Exchange (UZCE) for 100 billion soums ($9.5 million), Trend reports referring to the press service of the regulator.

It is reported that the securities will be placed on January 20. The maturity is calculated until April 20 of the current year. The maturity will amount to 90 days, and the interest rate will account for 14 percent.

It is noted that the bonds are planned to be placed in national currency.

According to the information, the Central Bank has already issued bonds in early January, but for 200 billion soums ($19). The circulation period then amounted to 182 days.

Earlier it was reported that in December 2020, Uzbekistan sold three-year bonds worth two trillion soums ($191 million) at 14.5 percent per annum. The sale was carried out together with 10-year bonds in the amount of $555 million at 3.7 percent per annum.

According to the Wall Street Journal, the bonds have generated strong demand among international investors, writes.

“The high demand for Uzbek bonds was unusual for a currency that is new and relatively unknown to most international investors. The idea is to help open up a local currency market there, but these deals only happen when the markets are hot enough,” economist at JP Morgan Stefan Weiler said.

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Follow the author on Twitter: @romakayeva

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