BAKU, Azerbaijan, May 25
By Klavdiya Romakayeva - Trend:
The volume of cash in circulation in Uzbekistan as of May 1, 2021 amounted to 23.5 trillion soums ($2.2 billion) or 22 percent of the total money supply, Trend reports with reference to the Central Bank of Uzbekistan (CBU).
The CBU published a brief review, explaining why the turnover of cash and the amount of cash issued in circulation differ in monetary statistics.
“An increase in the turnover of cash through bank tellers does not mean an increase in the amount of cash in circulation as part of the money supply. This is primarily due to the increase in the turnover of money through the banking system, which may also be due to the increased role of banks in cash transactions,” the CBU reports.
It is noted that the volume of cash the structure of the money supply in 2020 ranged from 23.2 percent to 28.4 percent. As of January 1, 2021, the total amount of cash in circulation amounted to 24.9 trillion soums ($2.3 billion), or 23.2 percent of the total money supply and four percent of GDP, increasing by 674 billion soums compared to the same period in 2020.
After reaching its peak in August of 30.9 trillion soums, or $3 billion (increase from February through August 2020 by 4.7 trillion soums or $444 million), the volume of cash in circulation by the end of 2020 returned to its long-term trend.
“The temporary increase in cash, first of all, was associated with restrictive measures that were introduced in the country in connection with the COVID-19 pandemic, after which individuals began to actively withdraw their funds from bank cards to meet their primary needs,” the CBU explained.
In addition, the CBU said that withdrawing money from bank plastic cards does not in any way affect the total volume of the money supply, since the money supply consists of deposits and cash in circulation.
“When money is withdrawn from bank plastic cards, only the structure of the money supply will change, that is, the amount of cash issued into circulation will increase, while the volume of deposits, on the contrary, will decrease,” the message said.
It is reported that since the beginning of 2021 there has been a decrease in the volume of cash in circulation. As of May 1, 2021, the volume of cash in circulation amounted to 23.5 trillion soums ($2.2 billion) or 22 percent of the total money supply.
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