The exchange rate shows how many units of one currency need to be given for one unit of another. It is formed on the foreign exchange market under the influence of supply and demand, as well as decisions by monetary authorities regarding the exchange rate regime.
There are several types of exchange rates, and confusion between them is the source of most questions. The official rate is set by the central bank and is used for accounting, statistics, and tax and duty calculations. The exchange rate is determined by the results of trading. Commercial bank rates are the prices at which banks buy and sell cash and non-cash currency for clients; they always differ from the official rate, and the difference between buying and selling prices constitutes the bank's income.
In Uzbekistan, the official som exchange rate is set by the Central Bank and published daily. The rate is determined by the results of trading, while actual exchange conditions in banks and exchange offices differ from the official rate. For savings planning, the practical significance lies not so much in the current value as in the difference between the yield of som and foreign currency instruments—this difference reflects market expectations for future exchange rate dynamics.