Central Bank Chairman Timur Ishmetov held a press conference on April 29, providing detailed explanations on how potential declines in global gold prices could affect the foreign exchange market and inflation, as well as the reasons for the lack of gold exports in the first quarter.

Ishmetov stated that the impact of gold prices on inflation is not direct but rather indirect through cash flows and revenues. He reaffirmed the bank's commitment to a free-floating exchange rate regime, emphasizing that artificial intervention is not favored. “Last year, the national currency strengthened due to foreign currency inflows. In the first two months of 2026, it slightly depreciated but recovered in March. Overall, the exchange rate change since the beginning of the year is around 0%,” he said.

The regulator head explained that in times of uncertainty, a free-floating rate is the most effective tool. He also detailed how gold price changes affect the economy and budget: the Central Bank buys gold from producers at global market prices in national currency, and a higher exchange rate generates additional income for producers, increasing tax revenues to the budget.

Ishmetov specifically addressed the fact that no gold was exported in the first quarter. “Indeed, gold was not exported in the first quarter. Exports excluding gold grew by nearly 25%. Therefore, in our analysis, we focus on non-gold exports,” he explained.

He stressed that the lack of gold exports did not have a direct negative impact on the economy, as gold is added to reserves, and subsequent exports only change the structure of reserves. “We do not export gold for statistical indicators or the trade balance,” he said.

Ishmetov noted that gold sales are carried out as part of the reserve management strategy, and by the end of the year, gold exports are expected to be realized in planned volumes.

Source: www.gazeta.uz