Central Bank of the Republic of Uzbekistan convenes roundtable on floating exchange rate under inflation targeting and signals further foreign exchange market reforms

The Central Bank of the Republic of Uzbekistan hosted an international roundtable on the role of a floating exchange rate in an inflation targeting regime, focusing on the country’s phased foreign exchange market reforms, the transition to a floating exchange rate, and practical issues in implementing inflation targeting. Participants from international financial institutions, academia, the banking and financial sector, and the media discussed drivers of exchange rate dynamics, the role of exchange rate flexibility in absorbing external shocks and supporting macroeconomic stability, and modern approaches to international reserve management. The exchange also covered international experience and recommendations on strengthening confidence in the national currency and improving foreign exchange market transparency and stability, with emphasis on cooperation among the central bank, commercial banks, the private sector, and international organisations to support a gradual move toward a freely floating exchange rate. Looking ahead, the Central Bank indicated it will continue work to improve foreign exchange market infrastructure, increase liquidity, strengthen international reserve management practices, and introduce instruments aligned with advanced international standards, alongside plans to deepen market infrastructure, refine exchange rate formation mechanisms, develop the derivatives market, and introduce local hedging instruments.