TASHKENT, Uzbekistan, January 30. According to preliminary calculations, Uzbekistan's real effective exchange rate index in December 2023 amounted to about 108.5 percent of the base period (September 2019), Trend reports.
As per data from the Central Bank of Uzbekistan, real effective exchange rate index strengthened by about 0.9 percentage points against December of the previous year.
The nominal exchange rate approached the base period (weakening by 0.4 percentage points against December of the previous year).
Real and nominal effective exchange rate indices steadily strengthened in the first half of 2023, reaching the peak values of 112.7 percent in July and 105.3 percent against the base period, respectively (strengthening by 8.2 percentage points and 5.8 percentage points against the corresponding month).
Among the main factors that determined the growing dynamics of indices is the accelerated weakening of currency exchange rates of a number of major trading partners, as well as inflation in Uzbekistan. As a result of increased pressure on the exchange rate in August there was an adjustment of the exchange rate of the Uzbek soum to the US dollar by 4.1 percent.
This adjustment, as well as the dynamics of foreign trade partners' exchange rates, contributed to the gradual approach of indices to their long-term trend in the second half of the year.
Meanwhile, Uzbekistan recorded an inflation rate of 1.2 percent in December 2023.
The data of the Statistical Agency of Uzbekistan shows that the composite Consumer Price Index (CPI) amounted to 8.8 percent in annual terms.