Why is this important
The volume of remittances directly affects the exchange rate, the purchasing power of the population, and the financial stability of the country. The growth of transfers and the activity of citizens in the foreign exchange market reflects the real amount of money coming into the economy. This indicator also demonstrates how the supply of foreign currency is formed, which determines the stability of the soum.
What happened
- According to the Central Bank, $15.8 billion in remittances were received in Uzbekistan in January-October, a 25% increase compared to the previous year.
- The increase in transfers increased the supply of foreign currency in the domestic market by $7.8 billion, which is 1.4 times more than in 2024.
- During this period, the population sold $17.4 billion to banks, which is 30% more than last year, and bought $9.6 billion, which is 24% more than in 2024.
- $2.2 billion in foreign currency was sent, which is $147 million less than in the same period last year.
Forecast
- If the trend continues and the supply of foreign currency continues to grow, it will be easier for the Central Bank to smooth exchange rate fluctuations.
- At the same time, high demand for currency purchases from the population can maintain pressure on the market.
- The main factor in the stability of the sum at the end of the year will be the balance between the purchase and sale of foreign currency.
Context
- The volume of remittances depends on the employment of labor migrants.
- In recent years, transfers have become a key factor in filling the domestic currency market.
- An increase in the supply of foreign currency eases the pressure on the soum exchange rate and gives banks more opportunities to meet the demand for foreign currency.
- The high volume of currency sales by the population demonstrates the active conversion of funds either for domestic expenses or due to the need for liquidity.
- A decrease in the volume of transfers from the country means that more currency remains in the economy.
