The gold and foreign currency reserves of Uzbekistan experienced a decline of approximately $1.65 billion in September and a cumulative decrease of $4.7 billion since the beginning of the year. As of October 1, the reserve level reached its lowest point since April 2020, standing at $31.04 billion, as reported by Trend.
The Central Bank has disclosed updated information concerning Uzbekistan’s international currency reserves, revealing that the official reserves amounted to $31.04 billion as of October 1. This represents the lowest value observed since April 2020.
In comparison to the preceding month, reserves witnessed a decrease of approximately $1.65 billion, with a total decline of $4.7 billion recorded since the start of the year.
During the reporting period, the physical volume of gold increased from 12.1 million troy ounces to 12.3 million troy ounces. However, the value of gold decreased from $23.43 billion to $23.05 billion. This decline can largely be attributed to the decrease in gold prices observed in the global financial markets. For instance, the price of 1 troy ounce of gold fell from $1939 on September 1 to $1848 on September 29.
One of the primary factors contributing to the decrease in gold prices during September is the stringent monetary policy implemented by the Federal Reserve in the United States. In such circumstances, U.S. government bonds become more alluring to potential investors, consequently diminishing interest in purchasing gold.
According to data provided by the World Gold Council, the Central Bank of Uzbekistan sold 46 tons of gold in the first eight months of this year, while acquiring 25 tons of gold. Considering that a significant portion of the country’s reserves is stored in gold, fluctuations in the price of this precious metal exert a noteworthy impact on the overall reserve assets.