Uzbekistan's official reserve assets experienced a notable surge, increasing by $1.6bn in December and reaching a total of $34.56bn as of January 1, 2024, Central Bank reports.
The country's gold reserve also saw a substantial uptick, growing by $907mn to reach $24.63bn, with the volume of the precious metal expanding to 11.9mn troy ounces (about 379.13 tons).
This increase comes after six consecutive months of decline, with reserves fluctuating from $837.9mn in May 2023 to $1.65bn in September. Following a rise in October, reserves slightly dipped in November, settling at $32.9bn as of December 1, 2023.
Why do countries need gold reserves?
In essence, gold reserves serve as a financial safety net, acting as insurance for the state in times of emergency. Typically held in highly liquid assets, such as gold and foreign currency, these reserves provide the flexibility to address debt repayment or make investments promptly.
Notably, prior to 2017, information about Uzbekistan's reserves was not disclosed publicly, and it was only in November of that year that the reserves were revealed to amount to $26bn.
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