Tashkent, Uzbekistan (UzDaily.com) —  The Uzbek soum has significantly weakened against the U.S. dollar over the past week. By 12 September, the dollar rose to 12,710 soums, compared to 12,630 soums the previous week, marking a 0.63% decline in the soum’s value.

The soum had been strengthening against the dollar in the previous weeks. Currently, the soum has little support from the Russian ruble, which is also gradually declining, forcing the soum to follow due to the strong correlation between the two currencies.

Uzbekistan’s fundamental economic issues, particularly those related to foreign trade and trade balance, are preventing the soum from appreciating confidently.

Domestic statistics show a neutral trend. Inflation in Uzbekistan since the beginning of the year until early September reached 5.5%. In comparison, the inflation rate was 3.8% during the same period in 2023. Despite this, price pressures remain close to the levels of two years ago, which is a strong and positive indicator. Industrial goods have seen price increases, while the growth in service costs has slowed.

Next week, the U.S. dollar is expected to trade between 12,650 and 12,750 soums.

Anna Bodrova,

Analyst at Alpari