Record Breaker: Currency in Circulation Hits 50 Trillion UZS Milestone
Cash in circulation in Uzbekistan reached a record high of 50.4 trillion UZS as of August 1, marking an increase of 539 billion UZS. This information comes from the Central Bank’s data on monetary aggregates, which also revealed a total broad money mass of 242.2 trillion UZS in the country.
In July alone, the money supply in the national currency rose by 6.5 trillion UZS to reach 186.9 trillion UZS. On the other hand, the balance of foreign currency deposits decreased by 778 billion UZS, while the narrow money supply increased by 2.3 trillion UZS.
The surge in cash circulation is attributed to various factors, including seasonal economic activities like weddings, construction projects, and summer expenses. These activities typically peak from April to November, leading to a higher demand for cash during these months.
Additionally, the stability of exchange rates and an increase in remittances from abroad also contribute to the rise in cash circulation. However, from November to March, the volume of cash in circulation tends to decrease significantly.
Moreover, the increase in money transfers from abroad in April to November leads to a rise in currency sales by the population. This trend is expected to continue if the value of the soum remains stable or strengthens against the US dollar.
Overall, the growth in cash circulation highlights the evolving financial landscape in Uzbekistan, driven by both long-term economic factors and seasonal fluctuations in demand.
