BAKU, Azerbaijan, April 7. The Central Bank of Uzbekistan (CBU) allocated $2.4 billion for foreign exchange intervention from January through March, 2022,Trend reports via the bank.
Foreign exchange interventions served as a mitigating factor to prevent sharp exchange rate fluctuations in the face of external risks, the Central Bank notes.
Previously, the Central Bank of Uzbekistan pledged to continue appropriate interventions to prevent sharp fluctuations in the soum’s exchange rate. In response to the economic uncertainty created by the Russia-Ukraine conflict in late February, the CBU raised the policy rate from 14 percent to 17 percent at a March 17 meeting.
The CBU said it hiked rates for the first time since 2018 to ensure financial stability, dampen growing devaluation and inflation expectations, mitigate the impact of external risks to the economy, and help maintain domestic savings in the local currency.
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