BAKU, Azerbaijan, June 23. Executive Directors of the International Monetary Fund (IMF) supported the rapid tightening of monetary policy by the Central Bank of Uzbekistan in early 2022, Trend reports citing the IMF.
At the same time, the fund's Executive Directors stressed the need to maintain exchange rate flexibility to mitigate the side effects of external shocks and supported plans to reduce the role of state-owned banks in the financial system, which should also contribute to strengthening monetary policy in Uzbekistan, the report said.
To ensure financial stability, they recommended strengthening the supervisory and macroprudential structure of the Central Bank, while continuing to closely monitor banks.
Furthermore, the IMF highly appreciated the progress of the Uzbek authorities in reforming and called for accelerating structural reforms. The Fund particularly welcomed measures to reduce the role of the State in the economy by privatizing state-owned banks and enterprises, opening markets for private business and strengthening competition and governance.