IMF Supported the Development of Uzbekistan's Currency Market and Proposed Measures for a Flexible Exchange Rate

From March 18 to 27, 2026, specialists from the International Monetary Fund conducted a mission in the Central Bank of Uzbekistan dedicated to the transition to a floating exchange rate. Experts noted positive changes in the development of the currency market and regulatory framework, as well as the diversification of the foreign economic sector and the strengthening of the internal infrastructure for market participants.

At the same time, they pointed to structural limitations: foreign investors have limited participation in local financial markets, and the institutional base — pension funds, insurance and investment companies — is in the formation stage. The development of these segments will help increase liquidity and more effectively distribute risks.

To support the transition to a flexible exchange rate, the IMF proposed revising the requirements for "market-making", encouraging the use of derivatives to hedge currency risks, introducing "close-out netting" to reduce counterparty risks, and expanding short-term currency instruments, including overnight forwards and swap transactions. A floating exchange rate will allow the economy to adapt more quickly to fluctuations in commodity prices and the global financial environment, increase resilience to external shocks, and make the market more attractive to investors.