Uzbekistan currency crashes as curbs lifted

AFP, BISHKEK: Uzbekistan’s currency fell by nearly 50 per cent yesterday after the government scrapped most restrictions on foreign currency operations in an effort to tempt international investors after two decades of isolation.

President Shavkat Mirziyoyev, who came to power after Islam Karimov’s death last year, has ordered the national currency’s rate with the dollar to be determined by the market, although the central bank will still play a role in ensuring its stability.

Uzbekistan’s central bank showed on its website  yesterday the dollar costing 8,100 soms, close to twice its previous official value of 4,210 soms and even more than the black market rate of 7,700 soms.

In a statement late on Monday the central bank said the move was “based on the analysis of the dynamics of exchange rate factors for 2003-2017”.

The move came as the Central Asian country looks set to open itself up to foreign investors after more than two decades of isolation and protectionism under Karimov.

The ex-Soviet country has long had a two-tier system for currency exchange in which black market dealers wielded major influence over the highly regulated economy.

Uzbekistan currency crashes as curbs lifted

AFP, BISHKEK: Uzbekistans currency fell by nearly 50 per cent yesterday after the government scrapped most restrictions on foreign currency operations in an effort to tempt international investors after two decades of isolation. President Shavkat Mirziyoyev, who came to power after Islam Karimovs death last year, has ordered the national currencys rate with the dollar to be determined by the market, although the central bank will still play a role in ensuring its stability. Uzbekistans central bank showed on its website yesterday the dollar costing 8,100 soms, close to twice its previous official value of 4,210 soms and even more than the black market rate of 7,700 soms. In a statement late on Monday the central bank said the move was based on the analysis of the dynamics of exchange rate factors for 2003-2017. The move came as the Central Asian country looks set to open itself up to foreign investors after more than two decades of isolation and protectionism under Karimov. The ex-Soviet country has long had a two-tier system for currency exchange in which black market dealers wielded major influence over the highly regulated economy.