Fitch named Uzbekistan the leader in terms of gold share in reserves.
Fitch Ratings said rising gold prices have strengthened Uzbekistan's external reserves, but rising gold concentrations pose risks if prices fall.
Fitch: Uzbekistan Leads in Share of Gold in Reserves
Fitch Ratings, the international rating agency, reports that Uzbekistan ranks first globally in the share of gold in its international reserves. Rising prices for the precious metal and the expansion of its reserves have significantly strengthened the country's external financial position in recent years.
According to the agency, between 2023 and 2025, Uzbekistan significantly reduced its current account deficit, driven by increased gold exports and rising global gold prices. Coverage of current external payments by the country's international reserves also improved, which Fitch considers an important factor in assessing its creditworthiness.
However, the agency points to the growing concentration of gold in reserves and exports as a potential vulnerability. Fitch considers Uzbekistan, along with Kyrgyzstan, among the most sensitive countries in the region to a sharp drop in gold prices. In such a case, the agency estimates, the country's nominal GDP, public finances, and balance of payments could deteriorate, while the value of its international reserves would decline due to the high share of gold. Fitch emphasizes that, despite these risks, the decline in gold prices alone will not lead to negative rating actions on Uzbekistan.
The agency notes similar trends in other countries in the Caucasus and Central Asia. Kyrgyzstan also holds a significant portion of its reserves in gold, and the country has benefited from rising gold exports and prices, although export volumes remained volatile. Azerbaijan's sovereign wealth fund, which forms the basis of the country's large external financial buffers, also holds a significant gold holding.
Overall, Fitch views gold accumulation as a positive factor for the external stability of a region historically characterized by high current account deficits, a significant share of foreign currency-denominated external debt, and highly dollarized financial sectors. However, the agency notes that the concentration of reserves in a single asset limits the potential positive impact of high gold prices on sovereign credit ratings.