Central Bank of Uzbekistan to increase investments in purchase of securities

TASHKENT. Sept 18 (Interfax) - The Central Bank of Uzbekistan plans to gradually expand the range of assets in which the country's international reserves are invested, including the purchase of highly liquid assets, Abror Mirzo Olimov, Deputy Governor of the Central Bank, said on Friday at the International Forum on State Asset Management in Tashkent.

Olimov said that the regulator has begun investing a portion of its international reserves in fixed-income instruments.

"Our portfolio already includes fixed-income securities. We are continuing to work in this direction. This means we plan to move beyond U.S. Treasury bills and invest in other types of highly liquid assets. These could include sovereign bonds, sub-national government bonds, and other fixed-income instruments," the Gazeta.uz news portal quoted Olimov as saying.

Securities currently account for 2.4%, around $1.77 billion, in Uzbekistan's international reserves.

"The structure of our international reserves is, one might say, quite unusual compared to that of other central banks. As of the beginning of September this year, we held approximately 439 tonnes of gold, with a market value of around $65 billion. This accounts for roughly 90% of our international reserves," Olimov noted.

According to him, the country's international reserves have doubled over the past five years, rising from approximately $35 billion in 2021 to over $72 billion as of September 1, 2026. During this same period, the volume of gold reserves increased from 360 to 439 tonnes, while the share of gold within the reserves rose from roughly 60% to 90%.

The increase in the share of gold is attributed to the growth in its physical volume and the rise in the global price of the metal, the Central Bank representative noted.

"It was precisely the combination of these two factors that caused the share of gold in international reserves to rise to approximately 90%," he explained.

Uzbekistan's international reserves significantly exceed adequacy benchmarks. According to Olimov, the volume of reserves is approximately 3.4 times the International Monetary Fund's minimum benchmark, sufficient to cover about 14 months of imports, and 4.4 times the country's short-term external debt.

The regulator adheres to three core principles of safety and capital preservation, liquidity, and yield in managing international reserves.

"Our goal is not to maximize profit or yield. It is about improving risk-adjusted returns within clearly defined safety and liquidity constraints," he added.