CB increases foreign exchange interventions to the level of Q1 2022

In April-June, the Central Bank spent 19.5 trillion soums on the purchase of monetary gold, the Central Bank reported.

Compared to the previous quarter, the regulator’s expenses increased by 9.9%. Even more tangible was the increase compared to the second quarter of last year – then he bought precious metal for 17.2 trillion soums (+13.3%).

Growth in spending largely contributed to the rise in price of gold. In the context of continuing uncertainty in the world market, the growing risk of recession, fluctuations in the yield of government bonds, the price of a troy ounce of the precious metal averaged $1.9-2 thousand.

At the same time, Uzbekistan actively exported gold – more than $4.3 billion in the first five months alone. In May, the Uzbek Central Bank became one of the most active sellers of the precious metal in the world, having sold 11 tons – at the same time, its stocks decreased by 9 tons.

In June, the tonnage of gold reserves increased again by 6.2 tons. However, now it remains well below the peak values reached last fall.

At the same time, the Central Bank intervened in the foreign exchange market in the amount of $2.4 billion (the equivalent of 28 trillion soums). This is comparable to the level of the first quarter of 2022, when the dollar rose sharply.

The introduction of additional currency into the market “sterilized” the excess liquidity that appeared as a result of additional purchases of gold. The regulator adheres to a policy of neutrality in relation to gold and foreign exchange reserves.