Annual Report on Exchange Arrangements and Exchange Restrictions, 2007
Chapter

UZBEKISTAN

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
October 2007
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(Position as of December 31, 2006)

Status under IMF Articles of Agreement
Article VIIIDate of acceptance: October 15, 2003.
Exchange Measures
Restrictions and/or multiple currency practicesNo restrictions as reported in the latest staff report as of December 31, 2006.
International security restrictionsNo.
References to legal instruments and hyperlinksn.a.
Exchange Arrangement
CurrencyThe currency of Uzbekistan is the Uzbek sum.
Exchange rate structureUnitary.
Classification
Conventional pegged arrangementSince mid-2006, the sum has been very stable vis-à-vis the dollar within a 2% band while the Central Bank of Uzbekistan’s (CBU) one-sided interventions resulted in steady reserve accumulation. As a result, the exchange rate regime has been reclassified, effective May 31, 2006, to the category conventional pegged arrangement from the category managed floating with no predetermined path for the exchange rate. The CBU fixes the official rate on a weekly basis. Exchange rates are fixed relative to the dollar. Exchange rates for other currencies are determined from their cross rates vis-à-vis the dollar in the international market.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketNo.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on the Central Bank of the Republic of Uzbekistan; Law of the Republic of Uzbekistan on Foreign Exchange Regulation (new version); www.cbu.uz.
Arrangements for Payments and Receipts
Prescription of currency requirements
Controls on the use of domestic currency
For capital transactions
Transactions in capital and money market instrumentsYes.
Transactions in derivatives and other instrumentsYes.
Credit operationsYes.
Use of foreign exchange among residentsThe use of foreign exchange for settlements and payments within Uzbekistan is prohibited, except for operations set forth in the Law on Foreign Exchange Regulation.
Payments arrangementsNo.
Administration of controlThe foreign exchange control authorities are the CBU, the MOF, the State Tax Committee, and the State Customs Committee.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)
On domestic ownership and/or tradeYes.
On external tradeGold is imported and exported on the basis of licenses issued by the Ministry for Foreign Economic Relations, Investments, and Trade (MFERIT).
Controls on exports and imports of banknotes
On exports
Domestic currencyResident and nonresident individuals are permitted to export cash domestic currency in an amount not exceeding 50 times the minimum wage; larger amounts require CBU permission.



Resident and nonresident legal entities are not permitted to export cash domestic currency, with the exception of the CBU and authorized banks that have CBU permission.
Foreign currencyResident individuals may export cash foreign currency up to $2,000 without restriction, amounts in excess of $2,000 up to $5,000 with permission from the CBU or an authorized bank, and amounts in excess of $5,000 with CBU permission.



Nonresident individuals may export cash foreign currency up to the amount imported and declared to customs; exports of cash foreign currency in excess of this amount require permission from the CBU or an authorized bank.



Resident and nonresident legal entities are not permitted to export cash foreign currency, with the exception of the CBU and authorized banks that have CBU permission.
On imports
Domestic currencyResident and nonresident individuals are permitted to import cash domestic currency in an amount not exceeding 50 times the minimum wage.



Resident and nonresident legal entities are not permitted to import cash domestic currency, with the exception of the CBU and authorized banks that have CBU permission.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on Foreign Exchange Regulation, as amended; Decree of the President of the Republic of Uzbekistan No. UP-1871, dated October 10, 1997; Decree of the President of the Republic of Uzbekistan No. UP-1979, dated March 20, 1998; Resolution of the President of the Republic of Uzbekistan No. PP-136, dated July 26, 2005; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 86, dated February 25, 2004; Instruction on the Procedure for the Importation into the Republic of Uzbekistan and Exportation from the Republic of Uzbekistan of Foreign Banknotes by Individuals (registered with the Ministry of Justice under No. 716, dated May 7, 1999).
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyAll enterprises, regardless of the form of ownership, as well as individuals, are allowed to open accounts in domestic and foreign currencies at domestic banks. Resident individuals may transfer abroad from these accounts without limitation foreign currency on the basis of invoices, bills, and other documentary evidence. Transfers of foreign currency from accounts of resident individuals to accounts of individuals abroad may be effected up to $5,000 in a single transaction.
Held abroadThe opening and use of foreign currency accounts abroad must comply with CBU procedures. Resident individuals, diplomatic and other representative offices of the Republic of Uzbekistan, and representative offices of Uzbek organizations abroad not engaging in business or other commercial activity may maintain such accounts only for the period of stay or activity abroad, after which the accounts must be closed and the balances repatriated.
Approval requiredYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on Foreign Exchange Regulation (new version); Procedure for the Maintenance by Authorized Banks of Accounts in Foreign Currency (registered with the Ministry of Justice under No. 511, dated October 22, 1998); Procedure for the Issuance of Permissions to Open Accounts Abroad (registered with the Ministry of Justice under No. 610, dated January 22, 1999).
Nonresident Accounts
Foreign exchange accounts permittedThese accounts may be opened by nonresident individuals temporarily in Uzbekistan, by diplomatic and other official representatives of foreign states, international organizations, and representative offices of foreign organizations that do not engage in economic or commercial activities. Foreign correspondent banks of authorized banks are entitled to open correspondent and other accounts in domestic currency and foreign currency with authorized banks.
Domestic currency accountsThe regulations governing foreign exchange accounts apply.
Convertible into foreign currencyYes.
Blocked accountsNo.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on Foreign Exchange Regulation; Procedure for the Maintenance by Authorized Banks of Accounts of Nonresidents in the Domestic Currency of the Republic of Uzbekistan (registered with the Ministry of Justice under No. 510, dated October 22, 1998); Procedure for the Maintenance by Authorized Banks of Accounts in Foreign Currency (registered with the Ministry of Justice under No. 511, dated October 22, 1998).
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsPrior to the conversion of funds, the MFERIT evaluates import contracts that are (1) financed by the budget, (2) financed by credits or loans mobilized by or guaranteed by the government, or (3) entered into by entities that are more than 50% state owned and are not secured by their own foreign exchange resources. All contracts must be registered with the relevant foreign exchange control division in the territorial offices of the State Customs Committee within seven days after application is made to an authorized bank.



In order to purchase foreign currency, enterprises and organizations that are clients of an authorized bank must present to the bank a conversion application and a contract (agreement, accord) with a foreign partner. Balances in domestic currency accounts of importers may be reserved (with their consent) by banks on submission of applications for conversion into foreign exchange.
Preshipment inspectionImporters are entitled at their discretion to engage consulting firms for evaluation of contracts and execution of preshipment inspections or to apply to the MFERIT for evaluation of contracts based on the established procedure without a preshipment inspection. Preshipment inspection is mandatory under contracts exceeding $10,000 in total value for imports of meat and edible meat by-products; dairy products; oils, seeds, and fruits; alcoholic and nonalcoholic beverages; tobacco products; equipment, mechanical devices, and electrical machinery; and equipment imported for the implementation of projects of the Republic of Uzbekistan Investment Program.
Letters of creditDocumentary LCs are used in import settlements.
OtherCertain consumer goods require health and quality certification by the state agency, Uzstandart.
Import licenses and other nontariff measuresImports of narcotics, psychotropics, and their precursors require import licenses from the Ministry of Health. Imports of weapons, precious metals and stones, uranium, and other radioactive substances require import licenses from the MFERIT. Imports of foreign movies, videos, and audio recordings require import licenses from the Ministry of Cultural Affairs and Sports. Imports of ozone-depleting substances require a permit from the State Environmental Protection Committee. Individuals importing goods for commercial purposes must be registered as individual entrepreneurs without establishment of legal entity and be authorized to engage in export-import operations and retail trade.



Foreign citizens may engage in any work, except that reserved for the citizens of Uzbekistan (the practice of law).
Negative listImports of the following are prohibited: printed matter, manuscripts, plates, drawings, photographs, photographic film, negatives, movies, video or audio products, phonograph records, and audio materials aimed at undermining state and social order; violating the country’s territorial integrity, political independence, or state sovereignty; or promoting war, terrorism, violence, national exclusivity, religious hatred, or racism and various forms thereof; and materials with pornographic content.
Other nontariff measuresMaximum limits for duty-free imports by resident and nonresident individuals apply to the following: (1) consumer goods for personal use from the territory of contiguous states; and (2) goods for proprietary needs from the territory of noncontiguous states.
Import taxes and/or tariffsThe simple average customs tariff rate is 14.84% and the weighted average tariff rate is about 16.6%, based on total import volume, or 1.85%, based on total import volume, excluding duty-free items. Ad valorem customs duty rates are applied at four levels: zero, 5%, 10%, and 30% of the customs value. Of 10,612 subheadings of the Harmonized Code (at the nine-digit level), the zero rate applies to 903 subheadings, the 5% rate to 2,784, the 10% rate to 3,098, and the 30% rate to 3,167. Combined duty rates apply to 443 commodity headings. In addition, an excise tax of between 5% and 200% is levied on 2,500 product groups. A VAT of 20% is levied on all imported goods, excluding the following: (1) goods designated for official use by foreign diplomatic and equivalent representative offices; (2) goods designated for personal use, including goods of initial acquisition, of diplomatic personnel of diplomatic and equivalent representative offices, as well as members of their families residing with them and if they are not citizens of Uzbekistan; (3) goods of initial acquisition imported by administrative and technical personnel of foreign diplomatic and equivalent representative offices, including members of their families residing with them if they are not citizens of Uzbekistan or do not reside in Uzbekistan on a permanent basis; (4) goods imported by individuals within limits for duty-free imports as approved by customs legislation; (5) goods imported into Uzbekistan to provide assistance in the case of natural disasters, armed conflicts, accidents, or mishaps; to provide humanitarian aid and free technical assistance; and for charitable purposes under the auspices of states, governments, and international institutions; (6) technical equipment imported into the customs territory of Uzbekistan for priority projects included in the 1998 investment program (in accordance with Attachment No. 1 to the Resolution registered with the Ministry of Justice of the Republic of Uzbekistan under No. 1124-3, dated March 12, 2004): (a) for investment projects financed with foreign credits guaranteed by the government; (b) for newly constructed and renovated enterprises specializing in the production of consumer goods; (c) by foreign investors as their contribution to the authorized capital of foreign investment enterprises; (d) for various types of pipes for facilities of the Republic’s oil and gas sector listed in Attachment No. 2 to the resolution registered with the Ministry of Justice under No. 1124-3, dated March 12, 2004; (e) for approved projects for the establishment of new production lines and modernization or retooling of existing production lines, subject to verification by an authorized bank; (f) for leasing, with appropriate verification of an authorized bank; and (g) for enterprises being privatized and counting toward the investment obligations of a foreign investor; (7) equipment (instruments, materials, systems and software for data, and organizational equipment) supplied as part of (a) the implementation of scientific, technical, and innovative programs and projects to be carried out in Uzbekistan from grants of international and foreign institutions and funds; and (b) international agreements for scientific and technical cooperation on the basis of findings of an authorized authority on the compliance of the aforementioned equipment with the goals and objectives of allocated grants (resources). When transferring the equipment (instruments, materials, systems and software for data, and organizational equipment) acquired or received from abroad, all payments and taxes must be paid in accordance with established procedures; (8) equipment and materials imported by legal entities, including nonresidents, with loans and grants from international and foreign governmental financial and economic organizations under treaties or agreements entered into by Uzbekistan; (9) raw materials, materials, and procurements for use in proprietary production and imported by foreign investment enterprises specializing in production of children’s shoes; and (10) pharmaceuticals (veterinary drugs), medical (veterinary) products, and raw materials imported for manufacturing pharmaceuticals and medical (veterinary) products.



These preferences do not apply to consumer goods imported by legal entities, except goods listed in sub-items (1), (2), (3), (5), (6), (8), (9), and (10). Products are deemed consumer goods in accordance with legislation.



A levy amounting to 0.2% of customs value is collected for customs clearance of imported goods.



A special procedure applies for the collection of customs charges from individuals. For all types of products imported by individuals for commercial activity, regardless of their code under the Harmonized Code and country of origin, a standardized customs tariff must be paid with the following rates: (1) 40% for foods; (2) 70% for nonfood items; (3) 26% for flour (code 1101 00–1103, except 1103 13, 1103 19 500, 1103 19 900, and 1103 20) under the Harmonized Code); and (4) zero for wood and timber.



In addition, combined rates of the standardized customs payment apply to several types of products in accordance with the attachment to the resolution registered with the Ministry of Justice under No. 1148-2, dated July 19, 2006.



A customs fee of 20% is collected on imports of nonfood consumer goods produced in third countries and reexported for commercial activities by individuals and legal entities from countries bordering Uzbekistan.
State import monopolyUntil February 23, 2006, when it was liquidated, imports of essential food products aimed at meeting public and state needs were effected by the Uzbeksavdo joint-stock company.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on the Customs Tariff No. 470-I, dated August 29, 1997; Law of the Republic of Uzbekistan on Guarantees for Legal Activities and Social Protections for Lawyers No. 721-I, dated December 25, 1998; Decree of the President of the Republic of Uzbekistan No. UP-1871, dated October 10, 1997; Decree of the President of the Republic of Uzbekistan No. UP-3321, dated September 26, 2003; Decree of the President of the Republic of Uzbekistan No. UP-3722, dated February 23, 2006; Resolution of the President of the Republic of Uzbekistan No. PP-183, dated September 19, 2005; Resolution of the President of the Republic of Uzbekistan No. PP-244, dated December 27, 2005; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 534, dated December 3, 1997; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 137, dated March 31, 1998; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 204, dated April 30, 1999; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 293, dated July 31, 2000; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 66, dated February 2, 2001; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 154, dated May 6, 2002; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 335, dated September 27, 2002; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 425, dated December 4, 2002; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 318, dated July 6, 2004; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 387, dated August 12, 2004; Resolution of the Ministry of Finance and State Customs Committee on Approval of the Instruction on Procedures for Calculating and Paying Value Added Tax for Goods Imported into the Republic of Uzbekistan (registered by the Ministry of Justice under No. 1124, dated April 15, 2002 (No. 1124-1 dated July 30, 2002, No. 1124-2 dated March 22, 2003, No. 1124-3 dated March 12, 2004, No. 1124-4 dated February 8, 2005, and No. 1124-5 dated February 5, 2007)); Resolution of the Ministry of Finance, State Customs Committee, and MFERIT on Approval of the Statute on Procedures for Collecting the Unified Customs Payment and Crediting It to the State Budget (registered by the Ministry of Justice under No. 1148, dated June 10, 2002 (No. 1148-1 dated August 2, 2002, and No. 1148-2 dated July 19, 2002)); Resolution of the Ministry of Finance, MFERIT, and State Customs Committee on Approval of Norms for the Duty-Free Importation of Consumer Goods into the Territory of the Republic of Uzbekistan by Individuals for Personal Use From the Territory of Contiguous States (registered by the Ministry of Justice under No. 1196, dated December 28, 2002); Resolution of the Ministry of Finance, MFERIT, and State Customs Committee on Approval of the Statute on Procedures for Collecting a Charge for Imports of Nonfood Consumer Goods Manufactured in Third Countries and Reexported for Commercial Activities by Legal Entities and Individuals from the Territory of Contiguous States (registered by the Ministry of Justice under No. 1210, dated January 27, December 2003 [sic]); Limits on Duty-Free Importation of Goods by Individuals into the Territory of the Republic of Uzbekistan (registered by the Ministry of Justice under No. 279, dated September 10, 1996).
Exports and Export Proceeds
Repatriation requirementsYes.
Surrender requirementsForeign investment enterprises specializing in the production of consumer goods where the share of foreign capital exceeds 50% of the authorized capital are exempt from mandatory surrender of foreign exchange proceeds for a period of five years from the time of registration, as are foreign exchange proceeds from exports by microfirms and small enterprises of goods (work, services) of proprietary production.
Surrender to the central bankProceeds in foreign exchange from centralized exports of cotton fiber must be surrendered in full to the CBU.
Surrender to authorized dealersFifty percent of proceeds in foreign currencies from decentralized exports of goods and services must be surrendered to authorized banks.
Financing requirementsSmall enterprises may export their products and services of proprietary production for cash foreign currency through cash offices of banks, with the proceeds credited to their accounts in accordance with the established procedure. Economic entities may export goods (work, services) for convertible currencies without advance payment or the opening of an LC, provided there is a guarantee from the buyer’s bank or an insurance policy protecting export contracts against political and commercial risk. Goods on consignment terms without a bank guarantee or an insurance policy protecting export contracts against political and commercial risk may be delivered by the exporter to enterprises abroad on condition of the exportation of goods of proprietary production by an exporter that is a member of the Chamber of Trade and Industry to trading and investment houses of the Chamber of Trade and Industry; of goods of proprietary production by exporters to enterprises abroad where the exporter’s share in the authorized capital is at least 51%; by enterprises that are part of ministries, departments, associations, and companies to an appropriate enterprise abroad where the share of the ministry, department, association, or company and also their specialized foreign trade firms and companies in the authorized capital is at least 51%; or by the Uzmarkazimpeks GAVK, Uzprommashimpeks GAVK, Markazsanoateksport GAVK, Uzinterimpeks GAVK, Uzvneshtrans GAK, or Urta Osie Trans GAK MAP to enterprises abroad where the company’s share in the authorized capital is at least 51%.
Documentation requirements
Letters of creditYes.
GuaranteesYes.
Export licensesExports of goods are not subject to licensing, with the following exceptions: (1) exports of weapons, precious metals, uranium, and other radioactive materials require licenses from the MFERIT; (2) exports of animals and plants included in the relevant list require permission of the State Environmental Protection Committee; (3) professional activities abroad by Uzbek citizens require a permit from the Ministry of Labor and Social Protection of the Population; (4) exports of works of art require licenses from the Ministry of Cultural Affairs and Sports; and (5) exports of antiques (representing significant artistic, historical, scientific, or other cultural value), grain, bread and flour products, flour and hulled and rolled products, livestock and poultry, meat and edible meat by-products, sugar, vegetable oil, raw hides, scrap and waste of nonferrous metal, silkworm cocoons, raw silk, and silk waste are prohibited.
Without quotasYes.
Export taxesNo.
References to legal instruments and hyperlinksResolution of the Supreme Soviet of the Republic of Uzbekistan No. 937-XII, dated September 3, 1993; Decree of the President of the Republic of Uzbekistan No. UP-1871, dated October 10, 1997; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 137, dated March 31, 1998; Resolution of the Cabinet of Ministers No. 245, dated June 29, 2000; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 263, dated June 22, 2001; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 189, dated August 9, 2005.
Payments for Invisible Transactions and Current Transfers
Controls on these transfers
Trade-related payments
Indicative limits/bona fide testYes.
Investment-related payments
Indicative limits/bona fide testYes.
Payments for travelPer diem and living expense norms apply to business travel allowances.
Quantitative limitsYes.
Indicative limits/bona fide testYes.
Personal payments
Indicative limits/bona fide testYes.
Foreign workers’ wagesNonresident individuals may convert wages received in domestic currency. Wages paid in foreign exchange may be remitted to accounts held abroad.
Credit card use abroad
Indicative limits/bona fide testYes.
Other payments
Indicative limits/bona fide testYes.
References to legal instruments and hyperlinksDecree of the President of the Republic of Uzbekistan No. UP-1601, dated October 24, 1996; Procedure for the Issuance of Resources for Business Trip Expenses in the Event of Business Trips by Staff of Ministries, Departments, Enterprises, and Organizations Outside the Republic of Uzbekistan (registered with the Ministry of Justice under No. 932, dated June 5, 2000).
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsYes.
Surrender requirementsProceeds from exports of services are subject to the same surrender requirements as those applying to proceeds from exports of goods.
Surrender to the central bankYes.
Surrender to authorized dealersYes.
Restrictions on use of fundsNo.
References to legal instruments and hyperlinksDecree of the President of the Republic of Uzbekistan No. UP-1871, dated October 10, 1997; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 245, dated June 29, 2000; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 263, dated June 22, 2001.
Capital Transactions
Controls on capital transactionsYes.
Repatriation requirementsYes.
Controls on capital and money market instruments
On capital market securitiesIn accordance with parts 5 and 6 of Article 8 of the Law of the Republic of Uzbekistan on Foreign Exchange Regulation (new version), procedures for the circulation in the territory of Uzbekistan of securities in foreign currency, the acquisition by residents of securities in foreign currency, and the acquisition by nonresidents of securities issued by residents are established by the authorized state authority for the regulation and coordination of the securities market together with the CBU.



Foreign exchange transactions associated with the movement of capital not stipulated by parts 2–5 of that article are carried out by residents according to procedures established by the CBU.
Shares or other securities of a participating nature
Purchase locally by nonresidentsYes.
Sale or issue locally by nonresidentsThe placement of securities of foreign issuers in Uzbekistan is based on annual quotas assigned by the Cabinet of Ministers, in accordance with the Law on Securities and the Stock Market.
Purchase abroad by residentsYes.
Sale or issue abroad by residentsYes.
Bonds or other debt securitiesControls apply to all these transactions.
On money market instrumentsn.r.
On collective investment securitiesControls apply to all these transactions.
Controls on derivatives and other instrumentsn.r.
Controls on credit operationsAgreements and guarantees pertaining to state external borrowings must be registered with the MOF, and agreements on external borrowings not guaranteed by the Republic of Uzbekistan must be registered with the CBU. Controls apply to all credit operations and transactions in guarantees, sureties, and financial backup facilities.
Controls on direct investment
Outward direct investmentInvestors may establish enterprises abroad on decision of the legal entity’s top management body. The MFERIT must be notified of the registration of an enterprise abroad.
Inward direct investmentInvestors may establish foreign investment enterprises (FIEs), which are a form of direct investment, after their registration with the Ministry of Justice and its regional offices. Enterprises may acquire FIE status subject to the following conditions: (1) the authorized capital of the enterprise must be at least $150,000; (2) one of the participants in the enterprise must be a foreign legal entity; and (3) the share of foreign investment must be at least 30% of the enterprise’s authorized capital. Enterprises with foreign capital participation that do not meet these criteria may be established via registration with the khokimiyats (governor’s offices).
Controls on liquidation of direct investmentThe Ministry of Justice and its regional offices monitor the FIEs’ compliance with their statutory obligations and the procedures for their registration and liquidation.
Controls on real estate transactionsThe procedures for nonresidents’ acquisition and sale of real estate are established by the Cabinet of Ministers.
Purchase abroad by residentsForeign exchange transactions for the purchase by resident individuals and legal entities of buildings, structures, and other real estate abroad are registered with the CBU.
Purchase locally by nonresidentsYes.
Sale locally by nonresidentsYes.
Controls on personal capital transactions
Loansn.r.
Gifts, endowments, inheritances, and legaciesn.r.
Settlements of debts abroad by immigrantsn.r.
Transfer of assetsControls apply to all these transactions.
Transfer of gambling and prize earningsn.r.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on Securities and the Stock Market; Law of the Republic of Uzbekistan on External Borrowings; Law of the Republic of Uzbekistan on Foreign Exchange Regulation (new version); Decree of the President of the Republic of Uzbekistan No. UP-1652, dated November 30, 1996; Statute on the Procedure for Notification of the Establishment by Legal Entities of the Republic of Uzbekistan of Enterprises Abroad or on Shared Participation in their Authorized Capital (Equity Capital) (registered with the Ministry of Justice under No. 1012, dated February 27, 2001); Statute on the Procedure for the Performance of Certain Foreign Exchange Transactions Associated with the Movement of Capital (registered with the Ministry of Justice under No. 1457, dated March 18, 2005).
Provisions Specific to the Financial Sector
Provisions specific to commercial banks and other credit institutions
Borrowing abroadYes.
Maintenance of accounts abroadYes.
Lending to nonresidents (financial or commercial credits)Yes.
Lending locally in foreign exchangeThese transactions are subject to the limit on the open foreign exchange position.
Purchase of locally issued securities denominated in foreign exchangeYes.
Differential treatment of deposit accounts in foreign exchange
Reserve requirementsReserve requirements apply to deposits of legal entities in domestic or foreign currency.
Liquid asset requirementsYes.
Differential treatment of deposit accounts held by nonresidentsn.r.
Investment regulations
Abroad by banksYes.
In banks by nonresidentsYes.
Open foreign exchange position limits
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investors
Insurance companies
Limits (max.) on securities issued by nonresidentsn.r.
Pension fundsn.a.
Investment firms and collective investment fundsIn accordance with Law of the Republic of Uzbekistan on the Mechanism for the Functioning of the Securities Market, an investment fund is a legal entity engaging in the acquisition and issuance of stocks for the purpose of mobilizing monetary resources of investors and investing them in the fund’s name in securities, bank accounts, and deposits. All legal entities engaging in investment activity involving the attraction of resources of outside legal entities and individuals may acquire the status of an investment fund after bringing their charter documents into accordance with the statute and state registration according to established procedures. Banks and insurance companies whose activities are regulated by legislation of the Republic of Uzbekistan on banks and insurance companies may not be investment funds.



Investment fund risks associated with such investments and the income and losses from changes in the market value of such investments are borne in full by the owners (stockholders) of the fund and are realized by the latter via changes in the current prices of the fund’s stocks.



According to the Statute on Investment Funds, approved by Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 410, dated September 25, 1998, investment funds may be established only in the form of open joint-stock companies.
Limits (max.) on securities issued by nonresidentsIn accordance with the Statute on Investment Funds, approved by Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 410, dated September 25, 1998, an investment fund does not have the right “to invest in the securities of enterprises that have not undergone state registration according to established procedures or whose main activities are performed outside the Republic of Uzbekistan.” In addition, in accordance with item 8 of the Statute on Privatization of Investment Funds, approved by Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 410, dated September 25, 1998, the aforementioned restriction also applies to privatized investment funds.
Limits (max.) on investment portfolio held abroadYes.
Limits (min.) on investment portfolio held locallyIn accordance with the Statute on Investment Funds, approved by Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 410, dated September 25, 1998, an investment fund does not have the right (1) to acquire common stock of any joint-stock company in the event that after their acquisition more than 10% of the stocks of that company will belong to entities affiliated with the investment fund; (2) to invest more than 10% of its net assets in the securities of a single issuer or in the stakes (participation shares) of a limited liability company established on the basis of a privatized enterprise, with the exception of government securities; and (3) to exchange stocks issued by the fund for stocks of joint-stock companies established in the process of denationalization, of which the State Property Committee of the Republic of Uzbekistan is a holder in an amount exceeding 5% of the net assets of the investment fund. The proportion of stocks of the investment fund of which the State Property Committee of the Republic of Uzbekistan acts as a holder may not exceed 5% of the net assets of the investment fund.
Currency-matching regulations on assets/liabilities compositionYes.
References to legal instruments and hyperlinksLaw of the Republic of Uzbekistan on the Mechanism for Functioning of the Securities Market; Resolution of the Cabinet of Ministers of the Republic of Uzbekistan No. 410, dated September 25, 1998; Statute on the Procedure by Which Commercial Banks Deposit Required Reserves with the Central Bank (new version) (registered with the Ministry of Justice under No. 1444, dated January 18, 2005); Rules for Maintaining an Open Foreign Exchange Position (new version) (registered with the Ministry of Justice under No. 1497, dated July 15, 2005).
Changes during 2006
Exchange arrangementMay 31. The exchange rate regime was reclassified to the category conventional pegged arrangement from the category managed floating with no predetermined path for the exchange rate.
Imports and import paymentsFebruary 23. The state import monopoly for the import of essential food products by the Uzbeksavdo joint-stock company was discontinued after its liquidation.

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