Tashkent, Uzbekistan (UzDaily.com) - In April 2020, some increased volatility of the soum rate against foreign currencies was observed in the domestic foreign exchange market.

- In particular, the exchange rate of the sum to the US dollar since the beginning of this month increased by 1.8% to 9,762 soums / US dollars (from the beginning of the year by 2.7%).

- As you know, the dynamics of the exchange rate of the sum is formed under the influence of emerging internal and external factors of supply and demand, primarily based on the dynamics of current account operations.

- Slowing down of trade and investment operations, against the background of measures being taken both in the trading partner countries and in the republic, to prevent the spread of coronavirus, led to a simultaneous reduction in imports and exports, and, accordingly, to a decrease in activity in the domestic foreign exchange market.

- The volume of export earnings in March of this year decreased by 10% compared to the previous month.

- A decrease in cross-border cash receipts due to quarantine measures and a slowdown in economic activity, as well as devaluation of national currencies in Russia and Kazakhstan, has an increasing trend.

- So, the volume of money transfers to the country in March made up US$296 million, which is 23% less than in February of the current year, and over the 8 working days of April, it decreased by 3 times compared to March of the current year.

- These factors contributed to the formation of certain expectations regarding the exchange rate, which was primarily reflected in the segment of operations with individuals. Since March, there has been a significant increase in the volume of purchases of foreign currency by the population.

- In particular, the monthly increase in the purchase of foreign currency by individuals in March reached45%, and during the first 8 working days of April, purchase volumes increased by 28% compared to the same period last month.

- Due to the above factors, as well as a significant depreciation of the exchange rates of national currencies of the main trading partners, a certain correction of the national currency rate is observed in the domestic foreign exchange market, and, accordingly, the gap in the real effective exchange rate of the sum to the currencies of the main trading partners is reduced.

- In particular, starting from March of this year the exchange rate of the Russian ruble against the US dollar weakened by 10.3%, Kazakh tenge - 12%, Turkish lira - 7.6%, Kyrgyz som - 11.2%.

- The Central Bank estimates the likelihood of a sharp devaluation of the national currency rate to be low, and according to preliminary forecasts, in the short and medium term, the dynamics of the exchange rate of the sum will form close to its fundamental trend with slight fluctuations.

- The Central Bank also reports that there is a sufficient amount of foreign currency in cash at the cash desks of commercial banks for carrying out conversion operations and all banknotes are disinfected. Bank exchange offices operate as usual, and banks have not established any limits and restrictions on the purchase and sale of cash foreign currency by banks.