As of March 1, 2024, Uzbekistan's official reserve assets amounted to $32.19 billion, decreasing by $2.37 billion during January-February, according to data from the Central Bank, Gazeta.uz reports.
The Central Bank of Uzbekistan had delayed the publication of data on foreign exchange reserves, which were not released for January 2024. However, the data is now presented for the combined two months.
According to the regulator's data, Uzbekistan's reserves in foreign currency decreased by $1.44 billion in January and an additional $381.5 million in February. The total reduction amounted to $1.82 billion, reaching $7.55 billion. This is the lowest level since September 2023 when the indicator dropped to a record low of $7.39 billion.
The physical volume of gold initially increased by 0.3 million troy ounces (9.3 tons) and then decreased by the same amount. As a result, the reserves retained 11.9 million troy ounces of precious metal (370.1 tons), but the value of the gold reserve decreased by $535.4 million.
In January 2024, gold prices dropped from $2076 to $2066 per ounce, and by the end of February, they further declined to $2059. However, in March, the price of gold has set several historical records and is approaching the $2200 per ounce mark.
The Central Bank of Uzbekistan attributes the reduction in the volume of international reserves to a "seasonal nature," which is typically observed in January-February. Examining data from previous years, the reserves either slightly increased or decreased during the first two months of the years 2022-2023. The regulator also notes that Uzbekistan's repayment of a portion of sovereign Eurobonds issued in 2019 contributed to this trend. Specifically, on February 20, Uzbekistan was due to redeem Eurobonds worth $500 million.
By the end of 2023, Uzbekistan's "financial cushion" had decreased by $1.2 billion, reaching $34.56 billion. The decline in reserves at the end of the year occurred for the first time since 2018. The physical volume of gold decreased by nearly 25 tons over the year.
CentralasianLIGHT.org
March 12, 2024