Republic of Uzbekistan: Staff Report for the 2019 Article IV Consultation—Informational Annex

2019 Article IV Consultation-Press Release and Staff Report


2019 Article IV Consultation-Press Release and Staff Report

Fund Relations

(As of March 31, 2018)

I. Membership Status

Date of membership: September 21, 1992

Status: Article VIII

II. General Resources Account

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III. SDR Department

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IV. Outstanding Purchases and Loans: None

V. Latest Financial Arrangements

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VI. Projected Obligations to the Fund: None

VII. Implementation of HIPC Initiative: Not Applicable

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

IX. Implementation of the Catastrophe Containment and Relief (CCR): Not Applicable

Exchange Rate Arrangements

Uzbekistan accepted the obligations of Article VIII Sections 2(a), 3, and 4 of the Fund’s Articles of Agreement with effect on October 15, 2003 and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.

With the exchange rate unification in September 2017, as well as the adoption and implementation of regulations liberalizing the FX regime in Uzbekistan, two exchange restrictions and one an MCP maintained inconsistently with Article VIII were eliminated. Since then, Uzbekistan maintains an exchange system free from restrictions on the making of payments and transfers for current international transactions. FX is generally freely available for payments and transfers for current international transactions without undue delay.

According to the authorities, the de jure exchange rate arrangement is floating. The exchange rate is determined daily based on the supply and demand for foreign currency established on Uzbekistan’s currency exchange. The Central Bank of Uzbekistan (CBU) is a direct buyer of monetary gold produced in Uzbekistan, acting as a supplier in the foreign exchange market in amounts equivalent to the volume of gold purchased from producers. The CBU also intervenes in the foreign exchange market to smooth out undue short-term volatility. Foreign exchange sales by the CBU in the FX market are not directed at affecting the fundamental trend of the exchange rate and are driven exclusively by the aim of sterilizing additional liquidity from CBU purchases of monetary gold.

Since May 2018, the exchange rate has increased its volatility, but there is still intervention to smooth short-term volatility. Therefore, the de facto exchange rate arrangement was reclassified to “other managed” from “stabilized”, effective May 8, 2018.

Article IV Consultation

The Republic of Uzbekistan is on the standard 12-month Article IV consultation cycle. The previous Article IV consultation was concluded on May 9, 2018.

Safeguards Assessment

The CBU is currently not subject to safeguards assessment policy since Uzbekistan is not expected to have a financial arrangement with the Fund in the near future.

Resident Representative

Currently, the Fund does not have a resident representative in Uzbekistan but maintains a locally staffed office. A resident representative office was previously open in Tashkent from September 1993 to April 2011.

Technical Assistance

(April 23, 2018 to April 16, 2019)

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Relations with Other International Institutions

(As of March 31, 2019)

Asian Development Bank:

European Bank for Reconstruction and Development:

World Bank Group:

Statistical Issues

(As of March 31, 2019)

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Table of Common Indicators Required for Surveillance

(As of March 31, 2019)

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The date for the latest observation and the date received reflect when data was transmitted to the area department.

Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).

Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Foreign & domestic bank and domestic nonbank financing.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Currency and maturity composition are not reported regularly.