uzbekistan currency crashes as curbs lifted
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Uzbekistan currency crashes as curbs lifted

Arab Today, arab today

Arab Today, arab today Uzbekistan currency crashes as curbs lifted

Time to open up to foreign investors
Bishkek (Kyrgyzstan) - AFP

Uzbekistan's currency fell by nearly 50 percent Tuesday 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 on Tuesday 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.  

Highly-placed government officials have long been rumoured to pull the strings in the lucrative black market for foreign exchange, the future of which is now under question. 

The move will be welcomed by companies working with international markets who were forced to sell their foreign reserves at the miserly government rate under the old system.

State carrier Uzbekistan Airways, which previously sold flights in dollars, said on Tuesday that it would now sell tickets using the Uzbek som.

"In order to create favorable conditions for passengers from September 5, 2017, Uzbekistan Airways is beginning the sale of air tickets for its flights to all destinations from the Republic of Uzbekistan in the national currency," the company said.

     'Market mechanisms'

On Sunday, a decree published on the presidential website called for the "exclusive use of market mechanisms in determining the exchange rate of the national currency in relation to foreign currency" and said citizens and companies would be able to purchase "unlimited" amounts of foreign currency. 

The same decree acknowledged that old foreign currency regulations in the country had "created an inefficient system of privileges and preferences for individual industries and business entities". 

While Mirziyoyev has praised the legacy of Karimov, under whom he served as prime minister for 13 years, he has also moved to distance himself from Karimov's authoritarian excesses and tried to tempt investors towards the commodity-rich republic.

In March, the European Bank for Reconstruction and Development announced it was set to resume lending in the country of 32 million after a decade-long standoff sparked by human rights concerns.

Human Rights Watch has also been invited back to the country following an enforced absence under Karimov, who ruled Uzbekistan with an iron fist from before independence from Moscow.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uzbekistan currency crashes as curbs lifted uzbekistan currency crashes as curbs lifted

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

uzbekistan currency crashes as curbs lifted uzbekistan currency crashes as curbs lifted

 



GMT 20:53 2018 Monday ,22 October

PM Imran Khan to leave for Saudi Arabia today

GMT 08:20 2018 Tuesday ,16 January

Lamborghini races to new sales record

GMT 00:19 2017 Wednesday ,13 December

Switzerland chainsaw attack: 5 hurt in Schaffhausen

GMT 09:51 2017 Tuesday ,07 November

Broadcom makes $130 bn mega-bid

GMT 20:53 2017 Tuesday ,07 March

Syrian forces retake Aleppo water-pumping station

GMT 11:15 2017 Monday ,01 May

Hanan Metawe reveals details of her accident

GMT 03:07 2017 Monday ,27 March

Bulgaria's Borisov bounces back again

GMT 22:18 2017 Thursday ,16 November

Hariri to arrive in France Saturday to meet Macron

GMT 06:43 2017 Monday ,13 February

Pakistan retaliates after US denies politician visa

GMT 07:49 2017 Tuesday ,28 November

Hussein Fahmy underlines financial sources
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday