Bank cash turnover in Uzbekistan experienced significant growth in 2023, reaching a total of UZS 831 trillion (approximately $67 bn), as reported by the Central Bank of Uzbekistan. This represents a notable increase of 19% compared to the previous year. The detailed breakdown reveals key insights into the sources and uses of cash within the banking sector.
Cash receipts at the cash desks of credit institutions played a substantial role, witnessing a 20% increase and totaling UZS 414 trillion (approximately $33.4 bn). This accounted for 62% of the overall receipts, although their share saw a slight decrease. The primary contributor to the influx of cash into banks remained the sale of goods, constituting 38% of the total volume. However, this share has decreased by 3% over the past two years.
Banking services emerged as another significant source of revenue, contributing UZS 138 trillion (approximately $11.1 bn), while the paid services sector added UZS 41.4 trillion (approximately $3.3 bn), comprising 10% of the total receipts. Taxes and mandatory payments constituted 2% or UZS 8.3 trillion (over $669 mn), consistent with the figures from the previous year.
Looking at cash receipts from bank cash desks, the total amounted to UZS 669 trillion (around $54 bn), reflecting a notable 28% increase from 2022. Payment terminals played a significant role, making up 38% (UZS 255 trillion, approximately $20.6 bn), with 40% of that figure originating from the trade and services sector, totaling UZS 102 trillion (approximately $8.2 bn).
Cash consumption in banks rose by 17%, reaching UZS 417 trillion, over $33.6 bn. Notably, money withdrawals from cards saw a continuous increase, constituting 45% (189 UZS trillion, over $15.2 bn) of total cash consumption. Meanwhile, the share of cash withdrawals in total card credits decreased from 27% to 24%. Over the year, bank cards received a total of UZS 789 trillion (around $64 bn).
In terms of cash payments, the shares of salaries (8%) and pensions with benefits (5%) continued to decline. Although the volume of wages paid in cash slightly increased to UZS 33.3 trillion (approximately $2.7 bn), pensions saw a decrease to UZS 20.8 trillion (approximately $1.7 bn).
As of January 1, 2024, the total amount of cash in circulation (M0) reached UZS 46 trillion (over $3.7 bn), representing 21.5% of the total money supply, which amounted to UZS 212 trillion (over $17 bn). This indicates a 0.8% reduction in the share of cash compared to the previous year.
Earlier Daryo reported that the Central Bank of Uzbekistan held its regular board meeting, where it announced the decision to keep the key interest rate unchanged at 14%. This move is in response to the ongoing strong demand in the economy and emphasizes the Central Bank's dedication to achieving a gradual reduction in inflation, with the targeted rate set at 5%.
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