The director of the Central Bank explains the reason of the sharp rise in dollar exchange rate

In the first half of March, money transfers to Uzbekistan reduced. The chairman of Central Bank of Uzbekistan Mamrizo Nurmuradov announced this.

According to the chairman of the Central Bank, the depreciation of the Uzbek som against the US dollar accelerated in the first half of March. On the one hand, this is partly due to a significant reduction in supply in the domestic foreign exchange market as a result of a sharp decrease in export revenues and cross-border remittances (mainly from Russia and Kazakhstan) due to the external geopolitical situation.

On the other hand, there has been a sharp depreciation in the national currency of major trading partners and an increase in devaluation expectations, as well as a temporary increase in the demand for domestic currency.

«We do not make forecasts on the exchange rate of the national currency, and the exchange rate of soms against the US dollar will depend on the balance of supply and demand in the domestic currency market under the influence of internal and external factors», - stated Nurmuradov.

According to him, the Central Bank’s decision to raise the base rate will also serve to stabilize the national currency.

Earlier, we reported that the Central Bank stepped up interventions in the domestic currency market in the first half of March of the current year in order to avoid sharp fluctuations in the exchange rate and ensure stable market performance. These interventions are supported by additional reserves created last year as a result of favorable exchange rate conditions.