Uzbekistan’s International Reserves Decrease by $230 Million in April
According to the Central Bank’s data, Uzbekistan’s official reserve assets decreased by $230 million in April and reached $35.2 billion as of May 1, 2023. The decrease in foreign currency reserves was $181.4 million, which resulted in foreign exchange reserves decreasing by $1.71 billion since the beginning of the year.
The value of gold reserves decreased by $50 million, totaling $24.2 billion, and the physical volume of precious metal dropped by 3.1 tons to 379.4 tons as of May 1. It is highly probable that Uzbekistan exported gold in April due to the decrease in gold reserves and the rise in gold prices from $1,999 to $2,034 per ounce.
The rise in gold prices has been due to the crisis in the banking sector in the United States and Europe, and the collapse of financial companies’ shares. According to Vladimir Chernov, an analyst of Freedom Finance Global, the growth dynamics of precious metal quotes are related to the expected completion of the US Federal Reserve’s policy of tightening the monetary policy, which was announced by the regulator’s chairman, Jerome Powell, at the end of May.
Despite the decrease in international reserves, Uzbekistan continues to maintain a significant amount of official reserve assets. The country has taken measures to attract foreign investment in recent years, including adopting open-market policies and liberalizing the foreign exchange market. As a result, a strong international reserve position has been established, which is essential for economic stability and sustainable development.