Azernews.Az

By Abdul Kerimkhanov

Uzbekistan is an important partner of the United States in ensuring stability, prosperity and security in the region of Central Asia.

The U.S. is one of the first states to recognize the independence of Uzbekistan. Over the past period, mutual visits at the highest and high levels were held several times, a solid legal base of relations between the two countries was created.

The common desire to preserve peace and stability on a regional and global scale, to develop mutually beneficial and long-term ties that meet the interests of two states and peoples is embodied in the basis of friendly cooperation between Uzbekistan and the United States.

During a visit to London, Finance Minister Jamshid Kuchkarov said that from the beginning of 2019, the Central Bank is going to diversify its reserves management methods and buy some U.S. treasury obligations.

Kuchkarov also confirmed that the government will annually use international debt markets and that two banks in Uzbekistan are likely to enter the market during 2019.

As he said, the government will continue to reform and privatize state-owned enterprises.

The first in line is Uzbekenergo, which will be divided into electricity generation and transmission in 2019, and part of it will be open to private investment through public-private partnerships.

As first deputy chairman of the Central Bank Timur Ishmetov noted, now half of Uzbekistan’s reserves are stored in gold, because the country itself mines it.

Ishmetov stated that Uzbekistan plans to gradually reduce the share of gold in reserves and add U.S. treasury bonds.

Uzbekistan sold $ 1 billion worth of bonds this week during its first placement on international capital markets.

According to MarketAxess, both bonds fell after the start of trading on February 14. The five-year paper was at 99.66 cents to the dollar, while the 10-year paper was at the level of 99.77 cents to the dollar.

Diplomatic relations between the United States and Uzbekistan were established on February 19, 1992.

Since then, the United States and Uzbekistan have developed a broad-based relationship, cooperating in such areas as border and regional security programs, economic relations, political and civil society issues, and English language training.

Uzbekistan and the United States signed a declaration on Strategic Partnership and the Basics of Cooperation in 2002.

Thanks to active cooperation with American companies, two countries managed to increase the bilateral trade by almost two times and bring it to $332 million in January-September 2018.

Currently, more than 200 enterprises with the participation of U.S. companies are successfully operating in Uzbekistan. American capital took part in the creation of 25 enterprises since the beginning of 2018.

Uzbekistan has signed a trade and investment framework agreement with the United States and other Central Asian countries establishing a regional forum to discuss ways to improve investment climates and expand trade within Central Asia.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94

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