As of January 1, 2023, the gold and currency reserves of Uzbekistan amounted to 35.8 billion dollars which is $2.3 billion more compared to last month.
Uzbekistan's both liquid assets also saw an increase in December 2022:
- Currency — increased by 1.7 billion dollars (11.6 billion dollars);
- Gold — increased by 600 million dollars (22.46 billion dollars).
Uzbekistan sold gold for the first time in seven months in November 2022. This situation also had an impact on the reduction of the country's gold reserves.
Why did Uzbekistan sell gold?
Global gold prices were formed around $2,050 in March. However, due to the geopolitical situation, prices fell below $1,650 during the year.
Uzbekistan decided to buy more gold and became one of the world leaders in purchasing precious metals.
By November, the situation improved somewhat, and gold prices in the world rose to $1,800. From this period, Uzbekistan started selling gold again.
Why does Uzbekistan need gold reserves?
Because it is the "safety cushion" of the state. Reserves are available for emergency situations in almost all countries of the world.
Reserves are usually kept in highly liquid assets. Gold and foreign currency meet these requirements — they can be used for debt repayment or investments at any time.
Until 2017, information about Uzbekistan's reserves was not disclosed to the public. In November of the same year, it was known that the reserves amounted to 26 billion. Since then, they have grown to 10 billion dollars.
China is in first place by a large margin - 3.1 trillion dollars of forex reserves. Japan is in second place ($1.23 trillion), and Switzerland is in third ($841 million).
Uzbekistan’s neighbouring countries, Kazakhstan's reserves are 33.9 billion dollars, Tajikistan's is 2.7 billion dollars, and Kyrgyzstan's is 2.5 billion dollars.
$35.8 billion is now enough to finance imports to Uzbekistan for more than 14 months.
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