The official reserve assets of Uzbekistan experienced a decrease of $8mn from November, reaching $32.9bn as of December 1, 2023, report from the Central Bank shows.
The country's gold reserves saw a decline of $247mn, leaving the total of amount in reserves with $23.7bn. The volume of precious metal also decreased by 0.4 mn troy ounces (12.4 tons) to 11.6 mn troy ounces (about 360.80 tons).
However, reserve assets in foreign currency, denominated in freely convertible foreign currencies, increased from $8.3bn to $8.6bn.
This decline marks the sixth consecutive month of decreasing official reserve assets, with reductions of $837.9mn in May, $649mn in June, $71.8mn in July, $958mn in August, and $1.65bn in September. October saw a deviation from this trend, witnessing an increase in gold and currency reserves for the first time since April.
What are gold reserves?
The purpose of gold reserves, in essence, serves as insurance or a safety cushion for the state. Reserves act as a contingency measure for emergency situations and are maintained in highly liquid assets that can be quickly liquidated. Gold and foreign currency fulfill these criteria, providing flexibility for debt repayment or investments at any given time.
Until 2017, information regarding Uzbekistan's reserves was not disclosed to the public. However, in November of the same year, it was revealed that the reserves amounted to $26bn.
Earlier Daryo reported that Uzbekistan claimed the top position as the primary global gold seller in October, signaling a slowdown in central banks' net gold purchases for that month. Despite a 41% decrease compared to September, the 42-ton volume of gold acquired exceeded the average from January to September 2023.