Uzbekistan's official reserve assets as of October 1, 2024, amounted to $41.14 billion (+5%), increasing by $1.98 billion in September, according to a report by the Central Bank of Uzbekistan. This is another record figure since statistics began in 2013, reports Gazeta.uz.
The country's Central Bank reserves have been growing for three consecutive months: in July, they increased by $1.06 billion, in August by $1.75 billion, and in September by $1.98 billion.
According to the regulator, last month Uzbekistan’s foreign currency reserves grew by $518.3 million—from $8.19 billion to $8.71 billion (there had been a $1.58 billion decline in June-July due to gold purchases).
However, since the beginning of the year (January-September), foreign currency reserves have decreased by $659.9 million, partly due to the repayment of $500 million in sovereign Eurobond debt that the country issued in 2019.
The physical volume of gold in the reserves slightly decreased again by 20,000 troy ounces (622 kg), down to 12.02 million troy ounces (373.9 tons).
Despite this, the value of the gold reserve increased by $1.46 billion—from $30.4 billion to a record $31.86 billion. The reason for this is that in September, gold prices rose from $2,502.8 to $2,647.1 per ounce (with peaks above $2,670) (+5.7%).
Overall, since the beginning of the year, the value of the Central Bank of Uzbekistan’s gold reserves has increased by 29.3%, or $7.23 billion.
It is worth noting that the Central Bank of Uzbekistan also includes the assets of the Uzbekistan Reconstruction and Development Fund (FRDU) in its reserves, which has effectively become part of the state budget. The volume of these assets is not disclosed. International rating agency S&P Global Ratings previously reported that it excludes FRDU assets from the Central Bank's reserves because "the fund's assets are primarily intended for fiscal, not monetary or payment needs."
It is estimated that Uzbekistan’s usable foreign currency reserves will decline until 2027 due to the expected fall in gold prices and the continued current account deficit. The Central Bank of Uzbekistan’s monetary gold reserves make up more than 80% of total foreign exchange reserves. The Central Bank has priority rights to purchase gold mined in Uzbekistan, buying it in local currency and then selling dollars on the domestic market to offset the impact of its interventions on the Uzbek som.
CentralasianLIGHT.org
October 8, 2024