IMF Assesses Uzbekistan’s Currency Market and Issues Recommendations
Tashkent, Uzbekistan (UzDaily.com) — From 18 to 27 March 2026, experts from the International Monetary Fund (IMF) conducted a technical assistance mission at the Central Bank of Uzbekistan focused on the transition to a floating exchange rate regime.
During the visit, international specialists met with the Central Bank’s relevant departments to discuss recent developments in the currency market, existing challenges, and planned measures for further development.
The IMF experts acknowledged positive progress in the evolution of Uzbekistan’s currency market and its regulatory framework. They noted that the foreign economic sector is steadily diversifying, the domestic currency market is improving, and new initiatives are strengthening infrastructure while expanding the financial instruments available to market participants.
At the same time, the specialists highlighted ongoing structural issues. Participation of foreign investors in local financial markets remains limited, and the institutional framework—including pension funds, insurance, and investment companies—is still at an early stage of development. Strengthening these segments would improve market liquidity and enhance risk allocation within the financial system.
To support the transition to a more flexible exchange rate, the IMF offered several recommendations: revise the market-making program to enhance market-based pricing; encourage the use of derivatives for currency risk hedging; implement close-out netting practices to reduce counterparty risk; improve internal communication within the currency market working group; and expand short-term currency instruments on the interbank market, including one-day forward contracts and swap operations.
Adopting a floating exchange rate will enable the economy to adjust more efficiently to commodity price changes, trade flows, and global financial conditions. This approach is expected to increase resilience to external shocks, improve monetary policy transmission, enhance the attractiveness of local financial markets for investors, and facilitate more efficient allocation of currency resources within the economy.