TASHKENT, Uzbekistan, January 19. Uzbekistan
reaffirmed its commitment to reforms, highlighting the role of a
free-floating exchange rate within its inflation-targeting
framework, Trend
reports via the Central Bank.
The regulator noted that inflation targeting remains the core of
monetary policy, with price stability as its main objective. Within
this framework, the exchange rate is formed by market forces rather
than administrative controls.
According to the Central Bank, a free-floating exchange rate
acts as a stabilizing mechanism for an open economy, helping absorb
external shocks and improve economic resilience. The regulator
emphasized that it does not target any specific exchange rate
level, viewing the exchange rate as an indicator rather than a
policy objective.
The Central Bank added that a transparent and rule-based policy
framework strengthens confidence among businesses and investors,
supports market liquidity, and creates a more favorable environment
for investment and long-term planning.
