IMF: Uzbekistan’s Foreign Exchange Reserves “Ample”

Дата публикации: Aug 03, 2017 5:10:39 PM

A week-long visit to Uzbekistan provided an opportunity for the mission of the International Monetary Fund (IMF) to discuss the development of the economic situation and the reform plans elaborated by the country's leadership. Following the talks, the fund’s specialists made a statement.

“The mission especially welcomed the authorities’ plan to frontload reforms of the foreign exchange system. Unifying exchange rates and allowing a market-based allocation of foreign exchange resources would allow the Central Bank of Uzbekistan (CBU) to pivot to a stability-oriented monetary policy capable of effectively controlling inflation. The reform would also promote job creation and growth by increasing external competitiveness, attracting foreign direct investment (FDI), and improving the allocation of domestic resources. Given Uzbekistan’s ample foreign exchange reserves, the reform can be implemented from a position of strength.

“The reform of the foreign exchange system would need to be backed up by restructuring state-owned enterprises and state-controlled banks, removing other bottlenecks to international trade and FDI, and streamlining laws, regulations, and practices that unnecessarily raise transaction costs for businesses, especially for small and medium-sized enterprises crucial for promoting job creation.

“The IMF stands ready to provide further technical cooperation and policy advice to support the authorities’ reform plans.”

(Source: «Uzbekistan Today» newspaper)