How much has dollar rate increased in Uzbekistan in five years?

In Uzbekistan, the dynamics of the U.S dollar against the Uzbek soum have undergone significant changes since 2018. A recent analysis by "Daryo" based on Central Bank data sheds light on the exchange rate movements over the past five years, revealing the country's economic landscape.

Current Exchange Rate

As of November 15, 2023, the Central Bank announced the exchange rate of one U.S dollar to be UZS 12,290. However, banks are selling dollars for an average of UZS 12,340 ($1.01), highlighting the fluctuations in the exchange market.

Historical Exchange Rates

• On November 20, 2018, the exchange rate was UZS 8,277 ($0.68) .
• By November 19, 2019, it reached UZS 9,500 ($0.78), reflecting a nearly 15% depreciation in one year.
• On November 17, 2020, the exchange rate was UZS 10,390 ($0.85).
• November 16, 2021, saw a rate of UZS 10,721 ($0.88).
• By November 16, 2022, the value had risen to UZS 11,170 ($0.91).

Made by

Annual Depreciation

The analysis suggests that the Uzbek soum depreciates by an average of 6-7% annually against foreign currencies.

"For more than four years, our national currency has been depreciating by 6-7% on average. If we look at our main trade partners, our soum has depreciated by 3.2% against the dollar over the past 6 months,"

Central Bank Chairman Mamarizo Nurmurodov told reporters in July this year.

Central Bank's Response to Sharp Devaluation

The Central Bank responded to a significant devaluation on August 11, where the soum depreciated by 3.5% in a single day. The regulator attributed the sharp increase to the strengthening of the real exchange rate of the soum due to the significant devaluation of the main trade partner countries' currencies. The Central Bank assured that they have sufficient instruments to prevent sharp devaluation in the future, and interventions would be implemented if necessary.

Currency Liberalization Measures

A presidential decree from September 5, 2017, initiated the liberalization of the currency policy in Uzbekistan. According to this decree, foreign currency is sold in free and unlimited quantities to citizens and entrepreneurs in Uzbekistan's banks.

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