Why is this important
Such a jump will significantly impact prices — imported goods, fuel, production components, and business expenses. Many companies plan purchases and hedge currency risks in advance.
What can affect exchange rate growth
- Increased demand for dollars from businesses and importers, especially under the influence of inflation and the external trade burden;
- Weakening of the national currency under pressure from external shocks, irregular inflows, and devaluation expectations;
- A more “mobile” exchange rate regime, as previously stated by the Central Bank head, will increase volatility.
Context
The official exchange rate is currently around 12,100-12,200 soums per dollar. Earlier, the Ministry of Economy and Finance predicted an average annual rate of around 13,250 soums per dollar. The Central Bank has already noted that the exchange rate will be more flexible with an expanded range of fluctuations.
