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Uzbekistan`s gold and foreign exchange reserves reach record $37.4 billion
Uzbekistan's official reserve assets as of August 1 amounted to $37.4 billion (+2.9%), having increased by $1.06 billion in July, according to the Central Bank. This is a record figure for the entire period of statistics.
According to the regulator, last month foreign currency reserves decreased by another $781.5 million, from $8.47 billion to $7.69 billion (in June, there was a decrease of $796.9 million). Since the beginning of the year (January-July), foreign exchange reserves have decreased by $1.68 billion, including due to the repayment of debt on sovereign Eurobonds for $500 million, which the country issued in 2019.
The physical volume of gold in reserves increased by another 310 thousand troy ounces (9.64 tons, in June there was an increase of 9.3 tons) - to 12.05 million troy ounces (374.8 tons).
The value of gold reserves increased by another $1.84 billion - from $27.32 billion to $29.16 billion. In July, gold quotes increased from $2,325 to $2,445.76 (rose to $2,480) per ounce (+5.2%).
The reserves also contain US Treasury bonds worth $35.3 million. Earlier, the regulator reported that it had begun diversifying its gold and foreign exchange reserves and had begun purchasing government bonds of foreign countries.
Despite the growth in reserves, it will be enough to cover 12 months of imports (previously it was 20 months).
It is worth noting that the Central Bank also includes in its reserves the assets of the Fund for Reconstruction and Development of Uzbekistan (FRDU), which has effectively become part of the state budget. Its volumes are not disclosed. The international rating agency S&P Global Ratings previously reported that it was excluding the FRDU assets from the Central Bank's reserves, since "the fund's assets are intended primarily for fiscal, rather than monetary or payment needs."
According to estimates, Uzbekistan's usable foreign exchange reserves will decline until 2027 due to the expected fall in gold prices and the ongoing current account deficit. The Central Bank's monetary gold reserves account for more than 80% of the total volume of gold and foreign exchange reserves. The Central Bank has a priority right to purchase gold mined in Uzbekistan. It buys gold with local currency and then sells dollars on the local market to offset the impact of its intervention on the Uzbek sum.
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