TASHKENT, Uzbekistan, January 19. Uzbekistan reaffirmed its commitment to reforms, highlighting the role of a free-floating exchange rate within its inflation-targeting framework, Trend reports via the Central Bank.
The regulator noted that inflation targeting remains the core of monetary policy, with price stability as its main objective. Within this framework, the exchange rate is formed by market forces rather than administrative controls.
According to the Central Bank, a free-floating exchange rate acts as a stabilizing mechanism for an open economy, helping absorb external shocks and improve economic resilience. The regulator emphasized that it does not target any specific exchange rate level, viewing the exchange rate as an indicator rather than a policy objective.
The Central Bank added that a transparent and rule-based policy framework strengthens confidence among businesses and investors, supports market liquidity, and creates a more favorable environment for investment and long-term planning.