‘US rate hike will also affect Uzbekistan’, Chairman of Central Bank Mamarizo Nurmurodov

'Costs will hike in the money market.'

The US rate hike will affect Uzbekistan and the entire global economy. This raises the costs of transactions made in dollars and the investment costs in money markets. The rate of return on dollar deposits and securities in emerging economies will hike accordingly. On the other hand, the investments that come to our country reach us only when conditions are higher than that profitability. This will have an effect. Getting credit lines denominated in dollars in foreign markets is more expensive. In the USA, the key rate was 8.5%. For instance, if the state takes a loan at 8.5%, commercial banks can get a loan at more than 10%. In the future, foreign currency loans of 12-14% will be offered to our subjects, who currently hold a 10% loan. This makes loans in dollars and foreign currencies more expensive. This is how it affects our market. Internal sources and resources are key drivers of our economy from which we develop and receive financial support. At the same time, both private and foreign investments are under consideration. Next year we plan to focus on these two directions.

'There are many uncertainties.'

There is a risk behind any uncertainty. Thus, we will be forced to apply tools not yet administered in the current monetary policy. Taking this into account, we should continue our hard work. That is the reason why we gather and communicate at the economic forum. The chairpersons of the central banks of 12 countries came to participate in this event. We discuss the current situation, how we react to it, what we achieve, and what tools we use. In this regard, we exchange our views and try to determine how effectively our instruments are being used. We will benefit from this forum as it is a valuable, helpful, and successful event. Face-to-face communication works better than talking on the phone. Of course, our foreign colleagues are also interested in learning more about Uzbekistan's experience. For example, yesterday, our conversation with the head of the Central Bank of Kazakhstan lasted more than one hour. I think such meetings are beneficial.