Why is this important
The diversification of gold and foreign exchange reserves allows for a reduction in financial risks, an increase in the stability of the economy, and an increase in the efficiency of state asset management in the context of fluctuations in global markets. For this, it is necessary to complete the integration of the asset management automation IT system, for which a request for proposals has already been prepared with the support of the World Bank’s RAMP program.
What happened
- The Central Bank purchased US bonds worth over $500 million in November.
- As of December 1, $1.52 billion worth of securities were held in Uzbekistan’s gold and foreign exchange reserves.
- Compared to the previous month, the volume of securities has increased, and growth has also been recorded since the beginning of the year.
- The share of securities in the regulator’s official reserves has increased.
- The regulator intends to invest in a wider range of fixed-rate instruments.
- With the support of the World Bank’s RAMP program, a proposal request (RFP) has been developed for the implementation of asset management software solutions.
Numbers and facts
- In November, the Central Bank purchased US Treasury bonds worth over $500 million, which ensured the main growth in securities investments over the month.
- As of December 1, the total volume of securities in gold and foreign exchange reserves reached $1.52 billion.
- In one month, the figure increased by $503.3 million, almost corresponding to the volume of November’s purchases.
- Since the beginning of the year, the volume of investments in securities has increased 15 times, which indicates a sharp change in approaches to the structure of reserves.
- The share of securities in official reserves increased from 1.72 to 2.49%.
- Financial instruments planned for investment must have a credit rating not lower than “A”.
Context
- According to the Deputy Chairman of the Central Bank, the diversification of reserves began with US Treasury bonds with fixed returns, which are traditionally considered risk-free assets.
- In the future, the regulator will consider the possibility of investing in sovereign bonds, papers of supranational organizations, derivatives, corporate bonds, and instruments of international financial organizations.
