On February 26, a meeting was held between the Central Bank of Uzbekistan and textile industry exporters to discuss the currency market and the som exchange rate. Deputy Chairman of the Central Bank Nodirbek Achilov emphasized that the som exchange rate is formed based on supply and demand in the currency market.

"The Central Bank is not an instrument or institution that sets the exchange rate," said Achilov. He explained that the rate is influenced by internal and external factors. External factors include global interest rates and changes in key trading partners like Russia. Internal factors involve fiscal policy, public debt, the dollarization level of the economy, and the shadow economy.

Achilov noted that the Central Bank influences the exchange rate indirectly through monetary policy, not directly. The bank's primary focus is controlling inflation, with a target of 5% inflation by the end of 2027.

He also highlighted that the dollarization level of deposits has decreased from around 40% in 2019-2020 to less than 22% currently, which positively impacts the currency market.

Source: www.gazeta.uz