The som strengthened against the US dollar by 7% since early 2025. This was announced on October 23 at the Investors' Day organized by the National Investment Fund (UzNIF) under Franklin Templeton management by Timur Ishmetov, Chairman of the Central Bank of Uzbekistan. He also presented data on inflation, reserves and the banking sector, naming the coming years as decisive for positioning the country as a regional hub for investment, trade and finance.

Macroeconomic Indicators

  • Inflation is declining and will reach approximately 8% by year-end, according to Ishmetov; the medium-term target is 5%.
  • Current account deficit will narrow to 3.5% of GDP.
  • International reserves reached a record $55 billion.

Monetary Policy

According to the regulator's head, policy is becoming more predictable and transparent. Since August, the Central Bank has issued seven-day bonds as the main instrument for liquidity absorption. In the future, it is planned to replace deposit auctions with bond placement auctions and introduce fixed-rate REPO operations.

Banking Sector Condition

Ishmetov characterized the sector as stable, profitable and well-capitalized. Total bank assets reached $72 billion, capital adequacy stood at 18%. Capital buffers exceed $3.5 billion, which, in his view, allows for weathering potential financial risks.

Reforms and Standards

An important milestone was the completion of the first Financial Sector Assessment Program (FSAP), conducted jointly with the IMF and World Bank in 2024–2025. The Central Bank plans to fully implement Basel III standards by 2028 and transition to International Financial Reporting Standards (IFRS) by 2027. According to the Central Bank head, this will enhance transparency and comparability of reporting and facilitate foreign investment inflows.

Inclusive and Islamic Finance

The regulator is expanding access to credit for small and medium businesses through traditional and innovative channels. New microfinance banks are entering the market, the non-banking sector is developing, and the Central Bank is ready to regulate the installment payment (BNPL) segment with consumer protection. The adoption of an Islamic finance law is also expected, which will enable the introduction of products based on Sharia principles. According to Ishmetov, this will create additional opportunities for investors from the Middle East and Southeast Asia.