Central Bank: There is no pressure on the foreign exchange market in Uzbekistan

The Central Bank of Uzbekistan announced that there will be no pressure on the country's foreign exchange market in 2026, emphasizing the maintenance of macroeconomic and financial stability. This was announced by Deputy Chairman of the Central Bank, Abror Mirzo Olimov, during a panel discussion at the Silk Road Finance & Technology Forum in Tashkent.

Olimov noted that macroeconomic and financial stability are key factors for attracting international investment. He added that lower inflation and inflation expectations facilitate more effective planning for both foreign and domestic investors.

The Deputy Chairman of the Central Bank noted that inflation in Uzbekistan remained in double digits during and after the pandemic. However, this figure is now declining. The regulator forecasts inflation at around 6.5% by the end of 2026 and expects to reach the target of 5% next year.

"On the one hand, there is high economic growth. On the other hand, inflation is low and declining, and we expect it to be around 6.5% by the end of this year. We hope to achieve our goal of 5% inflation next year. After that, we will strive to keep inflation close to our target," Olimov stated.

He cited Uzbekistan's transition to a fully floating exchange rate as another factor increasing the country's investment attractiveness. The Central Bank representative emphasized that the International Monetary Fund also recognized this transition in 2026.

The exchange rate now functions as a mechanism for absorbing external shocks. The Central Bank believes this system increases predictability for international investors when making investment decisions in Uzbekistan.

Olimov also reported that in 2025, the national currency will strengthen for the first time in history by approximately 7% against the dollar. However, the regulator does not expect any pressure on the foreign exchange market in 2026.

"This year, we are not seeing any pressure on our foreign exchange market; it is much more stable," stated the Deputy Chairman of the Central Bank.

According to him, the combination of economic growth, declining inflation, and a flexible exchange rate should contribute to increased confidence among both foreign and domestic investors.

Olimov also touched on further changes in the banking sector. He reported that in 2025, Uzbekistan completed a comprehensive financial sector assessment, conducted jointly with the International Monetary Fund and the World Bank.

Based on this work, the Central Bank intends to improve its requirements for the banking sector, taking into account international practices and Basel III standards. Furthermore, the banking system will transition to full reporting in accordance with International Financial Reporting Standards (IFRS).

Olimov emphasized that further strengthening financial and macroeconomic stability remains crucial for attracting international investors to Uzbekistan's economy.