29.01.2019

On January 29, the President of the Republic of Uzbekistan Shavkat Mirziyoyev held a meeting on the analysis of effectiveness of measures taken in Uzbekistan to improve monetary policy and foreign trade.

At the meeting it was noted that limitations and problems associated with free purchase and sale of currency, which were a serious obstacle to development of the economy and activities of entrepreneurs were eliminated in Uzbekistan. If before, when there was a requirement for mandatory sale of export earnings part, the use of foreign exchange earnings from exports in the domestic market amounted to 30 percent, then after the cancellation of such conditions, this figure reached 61 percent.

As a result, organizations became able to purchase necessary raw materials and equipment for them, provide current and investment needs. Last year, the volume of industrial production grew by 14.4 percent, export earnings by 19 percent, the volume of currency sold by exporters to banks increased 1.9 times.

This, in turn, helps to attract foreign investment in the economy of the country, organization of competitive industries, increase export potential.

The Head of the state in the Address to the Oliy Majlis of December 28, 2018 noted the consistent continuation of liberalization of the foreign exchange market, implementation of stable monetary policy among the important tasks in the economy.

Measures in this direction were discussed at the meeting. Instructions were given on the rational use of foreign exchange reserves, development of specific strategies for managing them.

The need was noted for optimizing the structure of gold reserves, the use of securities, including highly liquid assets, taking into account international experience.

The most optimal way of increasing foreign exchange earnings and gold reserves is to increase export potential. In this regard, the export forecast for the current year is determined in an amount 1.3 times higher than last year’s figures.

It was noted that some economic entities have arrears in export earnings.

The Cabinet of Ministers, the Central Bank, the Ministry of Economy and Industry have been instructed to develop and ensure implementation of specific measures on reducing overdue receivables in the context of each business association.

According to international experts, changes in foreign trade turnover are a natural phenomenon in the context of economic liberalization and increased investment.

The President emphasized that freely acquired currency should contribute to the goals of further development of the economy.

It was noted that in order to increase the competitiveness of domestic production in the domestic and foreign markets, it is necessary to effectively use the currency resources of economic entities and enterprises when purchasing technologies, equipment, raw materials having an investment character. The need was noted for determining measures on increasing production of import-substituting and localized products in enterprises with a state share.

The task was set for studying the impact of new customs tariffs on domestic production and further improving existing tariffs.

At the meeting, the proceeds from exports in the context of leading enterprises and organizations were critically analyzed, shortcomings in this sphere were indicated. Tasks were defined for increasing the export potential of the country, in particular increasing in export revenues of leading exporting enterprises. It was emphasized that in this case it is necessary to identify the areas of highest priority, as well as to develop concepts and roadmaps for their development.

Information of responsible persons was heard on issues discussed at the meeting.

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