MINEX Forum

Tag: Central Bank of Uzbekistan

  • Measures will be taken to further accelerate the deep processing of copper raw materials.

    Measures will be taken to further accelerate the deep processing of copper raw materials.

    A Presidential Decree “On measures to further accelerate the deep processing of copper raw materials in the republic” (Decree No. 77 of February 19, 2024) has been adopted.

    According to the Decree, it is permitted to make 25 percent of payments for copper raw materials purchased through exchange trading in the form of an advance, while the remaining 75 percent should be paid within 90 days after receiving the copper raw materials.

    At the same time, the amount of payments subject to installment payment for each day of providing the opportunity to pay in installments for copper raw materials is established in the following amounts:

    – for payments made within 30 days, no interest is calculated;
    – for payments made from the 31st day within 60 days, interest is calculated at a rate of 50 percent of the Central Bank’s base rate;
    – for payments made from the 61st day within 90 days, interest is calculated at the Central Bank’s base rate.

    The Decree comes into force on April 1, 2024, and its requirements do not apply to contracts concluded before April 1, 2024.

  • Uzbekistan expects to attract $7.2 billion in foreign investment

    Uzbekistan expects to attract $7.2 billion in foreign investment

    In the first quarter of 2024, Uzbekistan plans to utilize foreign investments worth $7.2 billion. The government of the republic adopted a resolution to this effect on February 14. Out of this amount, approximately $1.7 billion may be attracted by the Ministry of Energy, AGMK — $331 million, and Uzbekneftegaz JSC — $254.1 million. Among the regions, Tashkent leads with $428 million, followed by Namangan and Fergana regions with $329.4 million and $327 million respectively. According to the Central Bank of Uzbekistan, in 2023, foreign investors invested $7.2 billion in the economy of our country. Foreign investments in the republic doubled in one year. Earlier, “Kursiv” reported that last year, Uzbekistan attracted international loans worth $2.8 billion.

  • Uzbekistan buys 9 tons of gold in December 2023

    Uzbekistan buys 9 tons of gold in December 2023

    The Central Bank of Uzbekistan has emerged as the world’s second-largest gold buyer, the World Gold Council has reported. In December 2023 alone, the region’s second-largest economy purchased 9 tons of the precious metal. This is a significant increase from the 6.5 tons it had acquired in 3Q23.

    Global Central Bank Gold Holdings

    Global central bank gold holdings saw an increase of 28 tons in December. Turkey took the lead as the largest buyer, augmenting its reserves by 28 tons in a single month. Following Uzbekistan, China also made substantial purchases, securing a place in the top three with a purchase of 9 tons.

    Kazakhstan and Kyrgyzstan’s Gold Sales

    Contrary to the buying trend, Kazakhstan emerged as the main seller of gold in December. The country sold five times more precious metal compared to the previous month – 10 tons in December, a significant increase from the 2 tons sold in November. Additionally, neighbouring Kyrgyzstan also sold 2 tons of gold in December.

    Implications and Future Trends

    The recent surge in gold purchases by central banks, particularly in Uzbekistan, Turkey, and China, underscores the growing importance of gold as a strategic reserve. This trend is expected to continue, given the ongoing economic uncertainties and the role of gold as a safe-haven asset. However, the selling trend observed in Kazakhstan and Kyrgyzstan indicates a different strategic approach towards gold reserves in these countries.

    Uzbekistan has one of the largest gold mines in the world, Muruntau. Located in the mountains of Murintau in the south-west of the Kyzylkum desert, on the territory of the Tamdyn district of the Navoi region, the mine has estimated reserves of 150mn ounces of gold in reserves and resources. President Mirziyoyev of Uzbekistan announced on February 1  that gold production in the country grew by 23% over the last 7 years.

  • The volume of gold and foreign currency reserves in Uzbekistan has been announced

    The volume of gold and foreign currency reserves in Uzbekistan has been announced

    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.