Tashkent, Uzbekistan (UzDaily.com) -- A significant depreciation of the national currencies of the main trading partner countries led to the strengthening of the real effective exchange rate of the soum through foreign trade and remittances. This was reported by the press service of the Central Bank.

This, in turn, had a negative impact on foreign exchange earnings and the volume of foreign exchange supply in the domestic foreign exchange market through export channels and money transfers to the country.

As a result, there was a slight acceleration in the rate of devaluation of the soum exchange rate in the domestic foreign exchange market - a correction under the influence of fundamental factors.

The Central Bank of Uzbekistan said it has sufficient tools to prevent a sharp depreciation of the exchange rate, in order to reduce volatility by conducting additional interventions if necessary.

This correction ensures that the real effective exchange rate returns to its long-term trend, and a balanced exchange rate will serve to increase supply in the market by increasing foreign exchange earnings. The real effective exchange rate will stabilize towards the end of the year and over the medium term.