Tashkent, Uzbekistan (UzDaily.com) —  The exchange rate of the Uzbek soum has strengthened against the US dollar. As of 5 December 2024, the US dollar is worth 12,810 soums, which means the soum has appreciated by 0.25% over the past week. Previously, it had lost around 0.33% over the previous two weeks.

What is happening with the national currency of Uzbekistan is unusual but telling. It has strong support from internal factors and a reduction in inflationary pressure, which allows the soum to offset the depreciation of the ruble (to which it is closely tied), global adjustments in trade risks, and the demand for safe assets across the financial market.

The correlation with the Russian ruble has decreased, which is excellent news for the soum.

In addition to the mentioned drivers, the continued growth of Uzbekistan's foreign exchange reserves remains a fundamental support for the soum. This trend is likely to continue into 2025, providing a good long-term catalyst.

In the coming week, the USD/UZS exchange rate is expected to stay within the range of 12,800-12,860 soums.

Anna Bodrova, Analyst at Alpari