Uzbek som continues to drop, US dollar exchange rate rises
The US Dollar Hits Record High Against Uzbekistan’s Currency
In a historic moment, the official exchange rate of the US dollar has surged past 12,800 UZS on Uzbekistan’s currency exchange, reaching an all-time high. This is the fourth time this month that the value of the dollar has reached a new peak, causing concerns among traders and economists.
On Monday, October 14, the Central Bank of Uzbekistan raised the exchange rate of the dollar to an unprecedented 12,803.95 UZS, marking a significant increase of 22.91 UZS in just one trading day. This recent surge follows a pattern of steady appreciation of the dollar against the UZS, as the last peak was recorded exactly a week ago. Since the beginning of the year, the UZS has experienced a depreciation of 3.65%.
Commercial banks in Uzbekistan have been selling dollars at rates ranging from 12,800 to 12,840 UZS, with Apex Bank offering the lowest rate at 12,785 UZS. Meanwhile, the buying rate for dollars started at 12,720 UZS, with several banks such as Asia Alliance Bank, Aloqabank, BRB, NBU, Trustbank, and Universalbank offering a higher rate of 12,750 UZS.
Experts consulted by Spot believe that the earlier strengthening of the UZS in the first half of the year was only temporary. Factors such as the issuance of Eurobonds, rising gold prices, and interventions by the Central Bank played a role in stabilizing the national currency for a brief period.
Despite this, analysts are now predicting a further depreciation of the UZS before the end of the year. They point to an increasing trade deficit and a decline in remittances as key contributing factors to this trend. Some even forecast that the dollar may reach as high as 13,000 UZS in the coming months.
As traders and investors continue to monitor these developments closely, the future of the UZS remains uncertain in the face of external economic pressures and internal challenges.
