Uzbekistan’s international reserves exceed $72 billion
In August, Uzbekistan’s international reserves increased by $7.78 billion, or 12.1%, to $72.13 billion as of September 1. The country’s physical gold holdings reached a record high since statistics began being compiled in 2013, at 438.9 tons.
The key factor behind the increase in reserves was the rise in global gold prices, with the price of a troy ounce climbing from $4,052.2 to $4,602, up nearly 13.6%. This was supported by a weaker US dollar, lower yields on US government bonds, geopolitical tensions in the Middle East, and increased purchases by exchange-traded funds.
Alongside rising gold prices, the Central Bank increased its physical gold holdings by 258.9 thousand troy ounces, or about 8.05 tons, bringing the total to 14.11 million troy ounces. As a result, the value of gold reserves rose from $56.12 billion to $64.93 billion over the month, and their share of the country’s international assets approached 90%.
Amid rising gold holdings, foreign currency assets declined by $1.02 billion to $6.64 billion. The securities portfolio increased slightly by $3.4 million, reaching $1.766 billion.
The high share of gold in the reserve structure reflects the Central Bank’s conservative approach to asset management. To minimize risks arising from fluctuations in precious metal prices, the regulator continues to gradually diversify its reserves, which help ensure the country’s financial stability, mitigate exchange-rate fluctuations, and guarantee the timely fulfillment of external obligations.
Shakhnoza Mamaturopova, UzA
