The regulator devalued soum to US dollar almost by 92.38%. Such sharp devaluation of the soum was carried out for the first time in many years.

Since the beginning of this year (3231.48 soums), the exchange rate of soum to US dollar rose 2.5 times. During the course of 2016, the exchange rate of the US dollar to soum increased by 15%.

The regulator also devaluated the official exchange rate of soum to euro by 4,678.6 soums - from 4966.88 soums to 9645.48 soums per euro. The Central Bank of Uzbekistan also devalued soum against other currencies.

The Central Bank of Uzbekistan noted that the approximate equilibrium level of the exchange rate is currently about 8,000-8,150 soums per US dollar.

In this regard, the Central Bank set the rate of the sum to the US dollar at the level of 8,100 soums for 1 US dollar from 5 September 2017, the regulator stated.

The Central Bank will continue to set the exchange rates every Monday as the average value of the rates fixed at the trades of the currency exchange in the previous week. These rates will be used for accounting purposes, statistical and other reporting on currency transactions, as well as for calculating customs and other mandatory payments on the territory of the Republic Uzbekistan, the regulator said in its statement.

According to the Central Bank, the Uzbek Republican Currency Exchange will conduct daily interbank trading sessions on purchase and sale of foreign currency, where the exchange rate will be determined on the basis of the current supply and demand for foreign currency and published on the currency exchange’s website.

The devaluation occurred after publication of the decree of the President of Uzbekistan “On priority measures for liberalization of currency policy" from 2 September.

The decree said that the exchange rate of hard currency to national currency will be set on market mechanisms. The amount of commissions for purchase and sale of foreign currency is established by the commercial bank independently.

According to the document, from 5 September, resident-citizens of Uzbekistan will be able to sell foreign currency at exchange rates at the market rate and purchase it for conversion cards for use abroad without any restrictions.

From 5 September, legal entities of Uzbekistan will be able to purchase foreign currency in commercial banks without restrictions for payment on current international transactions, including import of goods, works and services, repatriation of profits, repayment of loans, payment of travel expenses and other transfers of non-trade nature.