There will be no sharp devaluation of the UZS in 2025 — Timur Ishmetov

Timur Ishmetov, Chairman of the Central Bank, stated during a press briefing on January 23 that the UZS depreciated by 4.7% against the US dollar in 2024. He also emphasized that a sharp change in the nominal exchange rate is not expected in 2025.

He expressed the belief that there are no factors that would affect the rate of significant devaluation this year. "We do not foresee any sharp fluctuations in the exchange rate. Of course, the exchange rate is determined by supply and demand in the domestic currency market, influenced by the inflow and outflow of foreign currency. It would be incorrect to predict the exact rate in advance," Ishmetov stated.

In 2024, cross-border remittances increased by 30%, and exports saw a strong rise, with a 16% increase excluding gold. Currency inflows were also higher. The outlook for 2025 is not pessimistic, with projections for positive currency inflows. Given these conditions, there is no reason to expect a sharp devaluation, Ishmetov concluded.

For context, in 2023, the UZS depreciated by 9.7% against the US dollar, while in 2022, it weakened by 3.94%.

Earlier, Timur Ishmetov had pointed out that the country's rising external debt, driven by the budget deficit, is also impacting the currency market.

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