Exchange Currency

Central Bank of the Republic of Uzbekistan

The Central Bank of Uzbekistan, officially the Central Bank of the Republic of Uzbekistan (Uzbek: O'zbekiston Respublikasi Markaziy banki / Ўзбекистон Республикаси Марказий Банки), is the country's national bank.


Banks of Uzbekistan had a long evolutionary path of development, to overcome a lot of difficulties to become a powerful body today, affecting the national economy.

1991 marked the beginning of the formation of a number of banks, which, in the changed circumstances of the Uzbek economy, gradually acquired new features, learning modern methods. 1991-1992, were critical in their views on banking. The adoption of the Law of the Republic of Uzbekistan "On banks and banking activity" was the basis for the formation of a two-tier banking system and a central bank charged him with new features. Confronted with the problem of regulating the currency and payment system, the formation of commercial banks. The funding for the various sectors of the economy should now implement create specialized commercial banks, which immediately started to develop a new strategy for its development and the formation of its internal divisions based on modern principles and requirements.

In 1993-1994, the continuing reforms in the banking sector. The introduction of the July 1, 1994, of a national currency - the sum is an important milestone in the formation of an independent banking system and the economic development of Uzbekistan in general. This actually means that the central bank has become completely independent in their actions and could further contribute to the effective establishment of the national monetary system with market-based instruments to regulate it. It was then that the activities of the Central Bank in developing tactics in the conduct of monetary policy and foreign exchange regulations, banking regulation, and then an efficient payment system has been fully designed to ensure the stability of the national currency.

1995 is characterized by the improvement of banking legislation. Historically important law "On the Central Bank of the Republic of Uzbekistan" not only complement the legal framework of the banking system, but also clearly defined a new, special status and powers of the Central Bank of the Republic of Uzbekistan, defining its primary goals and objectives. At the same time created the necessary conditions for improving the quality of public services, and to create a competitive environment in the loan and deposit markets. After the cancellation of a provision limiting the amount of savings involved volume of bank equity, significantly increased the capacity of banks and increased competition. The results were immediate. If in the beginning of 1994, 98.5% of household savings accounted for by the Savings Bank (now the "Halk Bank"), and on other banks - 1.5%, then by the end of that year, the share of other commercial banks increased, reaching 12 , 8%. Today the figure is 83.2%.

Law of the Republic of Uzbekistan "On banks and banking activity", adopted this year (1996), elaborated on the legal aspects of the second-tier banking structure - commercial banks.

In the development of the fundamental laws - "On the Central Bank of the Republic of Uzbekistan" and "On Banks and Banking" - consider the experience of countries with developed financial systems. These laws, and the Law "On joint-stock companies and protection of shareholders' rights" have created favorable legal conditions for the formation of private and joint-stock commercial forms of non-state banks. The development of the banking sector in this period has a special influence the following factors: first, as a result of the reforms in 1996, the Central Bank of the Republic of Uzbekistan became a full body of monetary regulation and supervision, and secondly, of the Law "On Banks and Banking" clearly defined the legal aspects of the second-tier banking system - the commercial banks. They were enshrined principles of universal banks, through diversification of bank assets and attracting foreign capital.

Characteristic of this period was the creation of credit and financial institutions, serving individual sectors of the economy. This specialization was due to the financing of certain industries and sectors of the economy (automotive industry, aircraft building, agriculture, etc.). Later specialized banks widened the scope of its operations and customers in accordance with the requirements of the business environment and a new level of economic development.

 Continue the process of formation of the Central Bank of the Republic of Uzbekistan as a regulator and supervisor of the banking sector. Performed a qualitative renewal legislation, the provisions of which are in line with international banking practice.

One of the strategic directions of the reforms is the encouragement of the banking sector of private capital.

This process has intensified after the 1997 Decree of the President of the Republic of Uzbekistan "On measures to stimulate private commercial banks." It provided for the granting of privileges to open the banks with a share capital of individuals at least 50%. 1997 entered the history of the banking industry in connection with the beginning of the introduction to the Bank's information systems. Up to this time almost all the settlements on the territory of the republic were held during the day. Since March 1997, it was introduced the new software and the transfer of all payments on auto. This allowed the payments in the republic last for 15 minutes, and within Tashkent - within 3 minutes.

Payment mechanism is being developed and the introduction of a modern system of interbank electronic payments. Banks have a unique opportunity at the time to equip the department of modern computer and telecommunication equipment. They are exempted from the payment of some taxes in order to free up funds could be used to upgrade equipment.

There appear qualitatively new consumers of financial and economic information - domestic and foreign investors.

In 1998, Banks in the country has gained force so that they could work with the Basel guidelines.

Based on the recommendations of the Basel Committee on Banking Supervision and the international practice, developed a set of regulations governing the activities of commercial banks in the international financial reporting standards. It uses the principle of early identification of problems in the balance sheet of a commercial bank and proactive measures to prevent the depletion of capital and reduce the liquidity of the bank in order to make financial stability of commercial banks.

In 1999-2000, The Bank of Uzbekistan implementing further liberalization of foreign exchange policy, Uzbekistan develops and introduces a mechanism for the sale of foreign currency on the OTC market.

This mechanism involves the purchase by authorized banks from customers of foreign currency on a contractual basis with the free rate, based on supply and demand in the foreign exchange market.

Years 2000-2010 is generally characterized by great achievements in strengthening the banking system of Uzbekistan. You will create an effective banking sector with modern infrastructure.

The banking system set strategic objectives to determine the prospects of development of the banking sector in Uzbekistan. The first is to increase the financial stability of banks and expanding the range of financial services in the domestic market. The second - to activate banks of Uzbekistan in the international capital market.

Uzbek President Islam Karimov during this period even paying attention to the development of financial and banking system, its strengthening and quality improvement activities, so that its strength and stability to withstand crises. In this regard, important decisions to improve the level of capitalization of a number of leading banks ("UPSB", "Asaka-bank", etc.). President of the Republic of Uzbekistan to increase the authorized fund "Microcredit" qualitatively alters the activity of the bank, making it one of the major centers of credit to finance small businesses and private entrepreneurship.

Each year of the period, the total is a new step forward development of the banking and financial system.

From 1 July 2001, small businesses are able to export goods (works, services) produced for foreign currency cash through cash banking institutions with enrollment in the established order of their foreign exchange earnings on the account. This unprecedented step to confidence is government of the Republic in order to further promote the development of small business and private entrepreneurship and expand their foreign trade. Consolidated stabilization fund created in freely convertible currency, which is becoming quite a serious tool for further development of the OTC market in Uzbekistan.

It became increasingly obvious to manifest itself cooperation between the private sector and the banking sector. Important factor in the development of this partnership were gradually improving the quality of banking services, the emergence of competition in the banking environment, a commitment to support the entrepreneurial body of the country. This period marked the beginning of a balanced lending policies of banks, careful study of customer needs and respond quickly to the needs of their business.

As part of the Law "On guarantees of protection of citizens in banks' deposit guarantee fund based in Banks, whose members, except for" Hulk bank ", have become commercial banks that operate in the country. Reliable, high quality service, partnerships with customers are the basic principles in the banks of Uzbekistan.

Improved institutional framework for the banking system. Adoption of policy instruments aimed at liberalizing and reforming the banking sector, determined the effectiveness of its activities. They were based on the principles of consistency and gradual process of liberalization of the banking business. Adherence to these principles has strengthened confidence in the local banks. This approach was a great achievement in the creation of a stable and reliable banking system.

The period 2003-2004 of development of the system of banking regulation and focus on the further liberalization and deepening of reforms in the country.

During this period, the objective was to, the achievement of which depended on the direction of future development banks - to strengthen public confidence in the entire banking industry, the transformation of the banks in the financial support ongoing reforms in the country. Privatization processes are activated and change their form of ownership. Banks, following the concept of development, improve strategies in accordance with the requirements of the new stage of economic development. Expanding their resource base and increase the level of capitalization is mainly due to the new shareholders to raise funds, to diversify its activities, new developments of products and tools based on IT-technologies.

Direct impact on the operation of banks have and factors associated with the continuation of the process of liberalization of the foreign exchange market and the creation of the necessary conditions to ensure the convertibility of the sum for current international transactions. In October 2003, the Republic of Uzbekistan has committed to Article VIII of the International Monetary Fund, with the result that the company had the opportunity to perform conversion on current operations. In this regard, Uzbekistan has achieved goals, relying on its own resources effectively and attracting foreign borrowing. The measures taken have contributed to the expansion of the activities of local entrepreneurs who have access to the conversion of the currency. Has increased the number of exchange points, to simplify the procedure of buying foreign currency.

It was a stage full and productive. The Central Bank, in addition to containing inflation and preventing sharp fluctuations of the national currency, was aimed at promoting exports and the effective use of foreign resources. Favorable price situation in Uzbekistan's main export commodities in world markets, as well as an export-oriented monetary policy contributed to the increase in exports and an increase in international reserves.

The work on the reform of the banking system. Its main areas are: strengthening corporate governance by enhancing the role of shareholders in the Bank's leadership, increasing the financial stability of banks by improving the quality of their assets, including foreign exchange, and further improvement of the banking business and the expansion of banking services provided, increasing the role of commercial banks in investment processes and improvement of the access business organizations of all forms of ownership to credit, including through international financial institutions.

2005-2006 was a period of increased capitalization banks in the country and bring them to participate in the investment process and the structural transformation of the economy. Exemption from tax on bank profits arising from the provision of investment loans to domestic enterprises for over three years and directed the equity increase is seen by the government as a further reserve for increasing banking activity. Additionally excluded from the tax base cost of commercial banks to open a mini-banks, created in accordance with the approved state programs.

During this period, the focus is on the implementation of specific measures to strengthen the currency and increased stability of the national currency and its exchange rate. This will significantly intensify the population that are more readily, demonstrating their confidence in the banks, which opens in deposit accounts. Increase the volume of the deposit base of banks. Formed the banking market, the range of banking products is updated with new species, such as leasing.

Development of retail services facilitates the establishment of joint banks with broad involvement of the international banking and financial capital. Banking market of the country seriously altered by the formation of banks with 100% private capital. Private banks have increased competition in the market, which is becoming one of the most important stages in the development of the domestic banking system. The government and the Central Bank strongly stimulate their development by providing tax incentives and technical support to the training of personnel. Currently, the number of private banks account for almost half of the total number of commercial banks in the country.

Stimulating the development of private banks in the country are more competitive, improve the quality of banking services, the efficient market allocation of financial resources. This, in turn, have a positive impact on development of private enterprise in the country.

2006-2007 was time of mortgage lending. The advantages of this form of banking services were quickly appreciated by citizens of Uzbekistan. New source of funds and their forms of social protection, especially young people, have supported two important laws - "On the consumer credit" and "On mortgage".

The provisions of the Law "On the consumer credit" are aimed at protecting the rights and interests of the consumer and greatly expand the capabilities of people to improve their living conditions, which results in a significant increase in consumer credit in the banks.

In October 2006, the Law of the Republic of Uzbekistan "On mortgage". Its adoption marked a new stage in the development of bank mortgage lending, determining the legal mechanism of credit for the purchase of real estate. The main purpose of the document was to regulate the relations arising from the application of collateral real estate. The emergence of the consumer market new services - mortgages - contributed to the improvement of living conditions of the population. As part of an already existing order of the President of the Republic of Uzbekistan dated 16 February 2005 "On further development of housing and housing market" is implemented by a number of new mechanisms in the long-term mortgage lending to the construction of housing, are joint-stock commercial mortgage bank - "Mortgage Banking" and the Foundation for the Support mortgage lending.

The Bank's strategy in this period aimed at strengthening the cash turnover, the formation of cash reserves in the branches, increasing the efficiency of its activities.

The implementation of measures "Program Reform and Development of the banking sector in 2005-2007" has further reform and liberalization of the banking system, ensuring its sustainable growth and a significant increase in market capitalization. With priorities was to strengthen monetary circulation, increased stability of the national currency and the exchange rate, increase the stimulation of deposits in bank deposits. Timely benefits from the Government of the commercial banks in the country, the constant stimulation of their pursuit of development determined the formation of banking and financial market in which lenders have begun to develop and offer new tools.

2008-2009, an important activity of banks is the development of retail banking products for the population, and for entrepreneurs.

Banks base their work in this area, based on the "gold" of the principle of international practice: the attractiveness of services for the population is proportional to the increase in availability of credit to businesses. Ongoing reforms stimulate the activity of the banks in line with previously adopted laws that have great social value and improve standards of living of the population - "On the consumer credit" and "On mortgage".

Responding to the challenges of the new realities and in the country, and the world banking community, the commercial banks of Uzbekistan extend the set of services, to market new products and at the same time actively generate international standards for financial institutions.

Commercial banks of Uzbekistan began to speak, first of all in 2010, as specific credit institutions which, on the one hand, involve temporarily free funds management, and on the other - is met by funds raised financing needs of enterprises, private enterprises and the public.

In recent years in the country, as well as in the global banking practice in general, international and national experts say the presence of the main trends - avoiding specialization and deepening the universalization of banking activities. This determines the actual content and substance of the operations of the bank loan relationship.

Legal status

The legal status, objectives, functions, powers, principles of organization and activities of the Central Bank of the Republic of Uzbekistan is determined by the Constitution of the Republic of Uzbekistan, the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" and other legislative acts.

Article 124 of the Constitution established that the banking system of the Republic of Uzbekistan by the Central Bank of the Republic.

According to Article 1 of the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan" The central bank is a legal person and is the exclusive property of the state.

Central Bank - economically independent institution exercising its costs from its own revenues.

These provisions reflect the norms of international practice, according to which the central bank is established as a legal entity, owned by the state, but the financial activities carried out by the Central Bank itself.

The Central Bank is a public body that, within its competence, develops guidelines for the single state monetary policy, has the exclusive right to issue banknotes in circulation in the form of notes and coins as legal tender, is the government of currency regulation and control, speaks as banker, adviser and fiscal agent of the Government of the Republic of Uzbekistan, performs the functions of supervision and regulation of banks and other credit institutions.

The property of the Central Bank are its cash and other valuables, the cost of which is reflected in the balance sheet of the Central Bank.

Structure of the Central Bank

The Central Bank of the Republic of Uzbekistan represents a centralized control system. For the performance of assigned tasks it creates the appropriate services and establishments, which work on the basis of rules confirmed by the Board of the Central Bank.

The structure and bodies of management of the Central Bank are determined by the Law “On the Central Bank”. The supreme body of the Central Bank is the Board of the Central Bank.

The Board consists of 11 members and is headed by the Chairman who is, at the same time, Chairman of the Central Bank. The Board of the Central Bank is allocated large powers by definition and regulation of the basic directions of monetary policy and development of the banking system.


According to the Law of the Republic of Uzbekistan "On the Central Bank of the Republic of Uzbekistan", the main objective of the Central Bank is to ensure the stability of the national currency.

The main objectives are:

  • Formation, implementation of the monetary policy and foreign exchange regulation;
  • The provision and effective payment system in the Republic of Uzbekistan;
  • Licensing and regulation of banking activities of credit unions, micro-credit institutions and pawnshops, the supervision of banks, credit unions, micro-credit organizations and pawnshops, licensing production of forms of securities;
  • Store and manage the official foreign reserves of the Republic of Uzbekistan, including the reserves of the Government under the agreement;
  • Organized jointly with the Ministry of Finance of the cash execution of the state budget;
  • To ensure the stability of the national currency Central Bank of Uzbekistan solves the basic problem, the essence of which is as follows.

By implementing a consistent monetary and exchange rate policy, the central bank provides a significant degree of control over the total supply of money in circulation, the stability of the exchange rate of the national currency against foreign currencies, helps to maintain public confidence in the banking system.

By changing the amount of the money supply through its credit and foreign exchange, the central bank affects the dynamics of prices of goods and services, total production, exports and imports, affects the level of employment.

Functions of the Central Bank:

  • Issues regulations on foreign exchange regulation, mandatory for all persons on the territory of the Republic of Uzbekistan;
  • Issue and revoke licenses for foreign currency transactions to banks, other legal entities and individuals, supervise and regulate their activities;
  • Sets limits on foreign exchange exposure and other prudential standards for banks;
  • Establishes the procedure for determining the exchange rate of the national currency against foreign currencies;
  • Owns and operates the international reserves of the Republic of Uzbekistan.

The task of organizing and providing settlement system identifies the important role of the Central Bank to ensure efficient payment system in the country. Payments on the territory of the Republic of Uzbekistan carried out in the form of cash and cashless payments.

The Central Bank of the Republic of Uzbekistan shall generally binding regulations governing rules of thumb. Uniform application of the rules provides uninterrupted and timely settlements throughout the country.

To ensure an effective system of Central bank constantly work on the introduction of new means of calculations based on modern technology, developing a system of accounting and reporting in accordance with international standards to ensure the financial and economic information of consumers - shareholders, investors, investors, auditors, creditors and foreign companies, organizations and banks.

One of the main objectives of the Central Bank of the Republic of Uzbekistan is the banking regulation and supervision of banks and other credit institutions. This is necessary to maintain the stability of the banking system and protecting the interests of shareholders, depositors and creditors.

Among the most important tools to achieve this objective is the licensing of banks and other credit institutions. The purpose of licensing is the admission to the banking and credit services to financially sound institutions managed by persons with impeccable reputation, able to ensure public confidence in the banking and financial system.

The Central Bank contributes to the maintenance of international reserves at a level sufficient for monetary and exchange rate policy of the Republic of Uzbekistan, as well as to provide for settlement of international transactions.

participate in the capital of banks and other legal entities, except for participation in the capital of the People's Bank of the Republic of Uzbekistan, of the commercial bank "Micro-credit", as well as companies and organizations that support the activity of the Central Bank.

The Central Bank reports to the Senate of the Republic of Uzbekistan and claimed by the special nature of its activities. In accordance with international practice, central banks, responsible for internal and external stability of the national currency, accountable to their parliaments, but not obey them in their activities.

Senate considers the annual report of the Central Bank, as well as independent auditor.

However, the Central Bank publishes an annual report in the press about the current situation in the monetary sphere and the main directions of the monetary policy. This information is necessary for analyzing the economic situation both at the macro and micro level. It allows you to orient its activities for the public authorities of all business objects. This practice helps to maintain and strengthen public confidence in the banking system.

It should be emphasized the independence of the Central Bank. According to Article 6 of the Law "On the Central Bank of the Republic of Uzbekistan" The central bank is independent in making decisions within their authority.

The state is not liable for the obligations of the Central Bank and the Central Bank of the obligations of the state, if they do not have assumed such responsibilities or unless otherwise provided by legislation.

World experience shows that the more independent central bank, the better the results of its monetary and exchange rate policies. High responsibility of the Central Bank in ensuring the effective functioning of the internal circulation of money, the stable operation of the banking system made it necessary for legal consolidation of its independence in the development and implementation of strategy and tactics of monetary and exchange rate policies.

According to the Law "On the Central Bank of the Republic of Uzbekistan" central bank regulation and supervision of banks, credit unions, micro-credit institutions and pawnshops in order to maintain the stability of the financial and banking system and to protect the interests of depositors, borrowers and lenders, and the monitoring and control over their compliance with the rules of the internal control and the provision of information related to the prevention of legalization of proceeds derived from criminal activity and terrorist financing, the specially authorized state agency.

Central Bank shall register banks and credit unions, as well as licenses for banking operations, license activities of credit unions, micro-credit institutions, pawnshops and production of forms of securities.

The central bank is in the State book registration of banks, registers of licenses issued to credit unions, micro-credit organizations, pawnshops and the production of forms of securities.

However, in the implementation of supervisory functions of the Central Bank states:

mandatory rules for banks to conduct banking operations, accounting and banking statistical reporting, annual reports;

Required for credit unions and microcredit organizations rules for financial transactions, accounting and reporting;

binding rules for pawnshops and operations.

The Central Bank may:

  • Receive and check accounts and other documents of banks, credit unions, micro-credit institutions and pawnshops, request and receive information on their activities, including the operations;
  • Require clarification of the information provided;
  • Check the activities of banks, credit unions and micro-credit institutions and their branches and entities affiliated with them, and the activities of pawnshops, apply sanctions to violators;
  • Establish requirements for the bank's internal audit;
  • Establish requirements for the implementation of the classification of the asset quality of banks and the establishment of adequate reserves to cover potential losses on assets;
  • Determine the conditions and the procedure of writing off bad assets;
  • Send to banks, credit unions, micro-credit institutions and pawnshops binding orders to eliminate detected violations in their activities;
  • Request and receive information on the financial status and reputation of the bank's shareholders in the event of the acquisition of part of the share capital in excess of the size specified in the legislation;
  • The qualification requirements for managers, board members and the chief accountant of the bank and its branches, executive managers of credit unions and micro-credit organizations.

The Central Bank may require compliance with regulatory auditors of the Central Bank, including the procedures and methodology, as well as receive them directly from the information related to the audit of the bank.

The Central Bank, together with a specially authorized state body shall adopt rules of internal control, mandatory for banks, credit unions, micro-credit institutions and pawnshops.

The central bank sets the banks of prudential regulations, including:

  • Capital adequacy ratio;
  • Maximum exposure to a single borrower or group of related borrowers;
  • Maximum size of large exposures and investments;
  • Liquidity ratios;
  • Requirements for the classification and valuation of assets, as well as provisioning against doubtful and non-performing loans that are created on the basis of this classification, contributions to which are charged to operating expenses of the bank;
  • Requirements for the interest on loans and transfer them to the income of the bank;
  • Limits of open currency positions.

International Cooperation

There is integration of the Republic of Uzbekistan and its Central Bank in the world community.

The Central Bank maintains Mutual cooperation with:

  1. International Monetary Fund (IMF);
  2. World Bank;
  3. European Bank for Reconstruction and Development;
  4. Asian Development Bank.

The international cooperation has allowed the bank to begin realization of the received credits on transformation system, maintenance of balance of payments, financing of private business, institutional and rehabilitation loans, and others.

There is a special working group, including an IMF representative, which is in charge of implementing further liberalization of the exchange market. The basic task of the working group is the creation of conditions, and development of a strategy, for maintenance of the convertibility of the Uzbek som on the current international operations.

The positive results of work with the international financial organizations opens new prospects for the realization of joint projects together with various economic institutes and large banks of the world.

Useful links

Currency of Republic of Uzbekistan:
Uzbekistani som
List of Central Banks:
Central Banks
Official website of Central Bank of the Republic of Uzbekistan:
Ministry of Finance of the Republic of Uzbekistan: