Over $800 million received by Uzbek banks in 2017
By Kamila Aliyeva
The ongoing reforms in the field of monetary policy have a significant impact on economic processes in the real and financial sectors of the Uzbek economy.
The operations of commercial banks with legal entities and individuals have reached a new level, according to the report of the Central Bank of Uzbekistan.
The implemented reforms are reflected in the volume of operations, as well as the structure of demand and supply of foreign exchange funds in the domestic foreign exchange market.
Uzbekistan’s population sold $854 million of cash foreign currency to commercial banks in January-September 2017.
The main volume of transactions of commercial banks on buying foreign currency from the population falls on Tashkent city (32 percent), Samarkand region (10 percent), Andijan region (8 percent), Fergana region (9 percent) and Namangan region (7 percent).
The volume of transactions of commercial banks on selling foreign currency to individuals amounted to $56 million.
The sale of foreign currency to individuals has a growth dynamics in September – ($3.9 million), October ($11.9 million), November ($17.8 million) and December ($22.3 million).
The monthly growth in the volume of sale of foreign currency by individuals is explained by the transition of private entrepreneurs engaged in import from the informal market to the banking sector, whose share in total sales amounts to 60 percent or $33.5 million.
The Central Bank of Uzbekistan devalued the national currency – soum – by almost two times on September 5, setting the official exchange rate of US dollar at 8,100 soums/USD compared to 4,210.35 soums/USD on September 4.
Simultaneously, restrictions were lifted for legal entities and individuals to convert the national currency.
In the first week after restrictions were removed, the population handed over $200 million to banks, and legal entities - about $100 million.
Currently, Uzbek people can buy foreign currency solely on plastic payment cards, which can be used abroad without any restrictions.
Earlier, individual entrepreneurs and farmers in Uzbekistan were allowed to withdraw foreign currency from their bank accounts.
In addition, legal entities can purchase foreign currency in banks without restrictions for payment on current international transactions - for the import of goods, works and services, repatriation of profits, repayment of loans, travel expenses and other non-trade transfers.
At the time, physical persons can only sell currency to banks through exchange offices.
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Kamila Aliyeva is AzerNews’ staff journalist, follow her on Twitter: @Kami_Aliyeva
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