Uzbekistan`s net gold and currency reserves reach $26.6 billion

The Central Bank of Uzbekistan summed up the monetary and banking sector following 2017 results.

According to the data, the Bank's assets   in the first half of 2017 increased by 26% or 19.3 trillion soums, including credit investments – 34% or 17.3 trillion. sums.

Credit growth was mainly observed in the financing of investment projects, financing small business and private entrepreneurship entities.

Increase of credit activity of banks led to the growth of the money supply in national currency by 15% and influenced the growth of the price level in the economy.

In this situation, in order to curb the inflation and to limit the growth of the money supply, the Central Bank increased its refinancing rate from 9 to 14%.

Tighter monetary policy has helped to gradually reduce the influence of monetary factors on inflation and to form a stable anti-inflationary dynamics of the main monetary indicators. In particular, the money supply in the national currency in the second half fell by 4.7%, which helped to keep its growth rate overall in 2017 at the level of 9%.

One of the most important macroeconomic factors determining the change in monetary policy in the second half of 2017 was the liberalization of monetary policy.

Following year-end results the net international reserves totaled $26.6 billion, having increased compared to the beginning of the year by $1.4 billion.