CB: Reserve assets will be enough to finance 13 months of imports

The Central Bank of Uzbekistan published information on the preliminary balance of payments for 9 months of 2019. It explains the main changes in the balance of payment indicators on the basis of operational data on exports and imports, international remittances, reserve assets and expert assessments of other components.

The Central Bank noted that the operational balance of payments is based on preliminary data and expert assessments, so the indicators may differ from the actual values.

Current account

According to preliminary calculations, the current account deficit of the balance of payments for the 9 months of 2019 will be $ 1.6 billion., a 50 % decrease compared to the same period in 2018 ($3.1 billion).

Favorable price conditions on the world markets for Uzbekistan's commodities contributed to the growth of exports of goods to $11.1 billion, compared to $ 7.3 billion in the corresponding period last year. The increase in the value of exports is associated with an increase in both physical volumes and the value of goods.

Imports rose to $15.6 billion compared to the same period last year ($12.7 billion). The largest increase in imports (21% and 26%, respectively) was due to imports of machinery and equipment (32% of total imports) and vehicles (13% of total imports). As a result, the negative trade balance compared to the 9 months of 2018 improved by 17% and amounted to $4.5 billion.

Financial account

The financial account (excluding operations with reserve assets) is estimated to have a negative balance of $5.3 billion. Net capital inflows are related to the operations of the public administration sector and the growth of external credit lines, as well as the placement of sovereign bonds of Uzbekistan.

Reserve assets as of October 1, 2019 are estimated at $ 27.9 billion, which in turn is sufficient to finance about 13 months of Uzbekistan's imports (recommended level 3 months).