Uzbekistan's official reserve assets as of September 1 amounted to $39.15 billion (+4.7%), having increased by $1.75 billion in August, according to information from the Central Bank of Uzbekistan. This marks another record-high level since statistics began being recorded.
According to the Central Bank of Uzbekistan, last month, foreign currency reserves increased by $503.1 million - from $7.69 billion to $8.19 billion (after a decrease of $1.58 billion in June-July due to gold purchases). Gazeta.us reports.
Nevertheless, from the beginning of 2024 (January-August), foreign currency reserves have decreased by $1.18 billion, partly due to the repayment of $500 million in sovereign Eurobonds issued by the country in 2019.
The physical volume of gold in reserves, after rising in June-July (by 18.94 tons), slightly decreased by 10 thousand troy ounces (311 kg) to 12.04 million troy ounces (371.7 tons).
Despite this, the value of the gold reserve increased by another $1.24 billion—from $29.16 billion to $30.4 billion—setting a record since statistics began in 2013. The reason is that in August, gold prices rose from $2,446.28 to $2,502.77 per ounce (+2.3%), with a peak of $2,526.
Overall, since the beginning of the year, the value of the Central Bank of Uzbekistan’s reserves in gold has grown by $5.77 billion.
The reserves also include U.S. Treasury bonds worth $35.48 million. Earlier, the regulator announced it had begun diversifying gold and currency reserves by acquiring government bonds from foreign countries.
Despite the growth in reserves, they would only cover a little more than 12 months of imports (previously, it was 20 months).
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 volumes of this fund are not disclosed. International rating agency S&P Global Ratings previously reported that it excludes the FRDU’s assets from the Central Bank’s reserves because "the fund’s assets are primarily intended for fiscal, not monetary or payment, purposes."
According to estimates, Uzbekistan’s usable foreign currency reserves will shrink until 2027 due to the expected decline in gold prices and the ongoing current account deficit. Monetary gold reserves make up more than 80% of the Central Bank's total foreign exchange reserves. The Central Bank has a priority right to purchase gold mined in Uzbekistan. It buys gold in local currency and then sells dollars on the domestic market to offset the impact of its interventions on the Uzbek som.
CentralasianLIGHT.org
September 9, 2024