Issue 256 - 21.11.2018
21.11.2018

Decrease in export volumes reduces foreign exchange reserves of Uzbekistan

Official statistics of Uzbekistan recorded a decline of 4.1% to $10,258 million in exports in January-October 2018 compared to the same period last year. According to the State Statistics Committee, the decline in exports is increasing. In 9 months, exports decreased by 0.4% and amounted to $9,367.6 million. In January-August, exports grew by 4.4% compared with the corresponding period of 2017 and exceeded $8.6 billion.

The editors of nuz.uz asked questions about the consequences of a decrease in export opportunities. The answer is obtained from analytical materials of experts of the State Committee on Statistics. Analysts view the issue from a different perspective. Namely: if the export volume in the country exceeds the import volume, what does it affect?

First of all, it affects the volume of foreign exchange reserves. Since we sell exports for foreign currency, we also buy imports for it, and, consequently, the excess of exports over imports is a net inflow into the country of foreign currencies.

The net inflow of foreign currency, in turn, has an impact on the exchange rate of the national currency, the scheme of which is as follows: the growth of foreign currency earnings (net exports) leads to the growth of foreign currency volume on the foreign exchange market, causing strengthening of the national currency according to the law of supply and demand.

Growth in exports also affects inflation in the country, generated by a favourable foreign economic situation as follows: a rise in prices for export goods leads to a rise in foreign currency earnings, a rise in domestic demand for soum, because exporters need soum for domestic taxes, wages and etc., according to the law, it is necessary to pay in soum. The Central Bank is forced to ensure this demand by issuing soum which leads to inflationary trends in the economy.

Export growth affects the volume of public debt, as with a positive balance, a country can easily borrow on foreign markets and pay off foreign public debt in foreign currency, and has a positive effect on the investment climate.

According to the press service of the Central Bank of Uzbekistan, the volume of net foreign exchange reserves of Uzbekistan fell by $382 million by the beginning of September, reaching $25.9 billion.

In August, gross foreign exchange reserves fell by $519 million, amounting to $26.8 billion. Of these, foreign exchange assets amounted to 12.9 billion dollar (minus 67 million dollar per month), monetary gold to 13.9 billion dollar (151 million dollar per month).

The decrease in gross gold and foreign exchange reserves in August was explained by the Central Bank by lowering the price of gold for $1,219.2 to $1,206.85 per troy ounce.

There is no more recent information about the state of the country's foreign exchange reserves by the Central Bank of Uzbekistan.

Reported by News of Uzbekistan.

Uzbekistan General

21.11.2018

New edition of the law On Defence

The draft law on amending and supplementing the Law on the Defence of Uzbekistan was published on November 15 for public comment. The document was prepared by the Ministry of Defence of Uzbekistan.

The project proposes to include international cooperation of Uzbekistan in the military-technical sphere.

According to the document, it will...

The draft law on amending and supplementing the Law on the Defence of Uzbekistan was published on November 15 for public comment. The document was prepared by the Ministry of Defence of Uzbekistan.

The project proposes to include international cooperation of Uzbekistan in the military-technical sphere.

According to the document, it will...

21.11.2018

Uzbekistan joins CIS intellectual property agreement

The President approved an agreement on the formation and development of the intellectual property market of the CIS countries.

Uzbekistan has joined the agreement on the formation and development of the intellectual property market of the CIS countries. This is stipulated by the resolution of President Shavkat Mirziyoyev of November 14...

The President approved an agreement on the formation and development of the intellectual property market of the CIS countries.

Uzbekistan has joined the agreement on the formation and development of the intellectual property market of the CIS countries. This is stipulated by the resolution of President Shavkat Mirziyoyev of November 14...

21.11.2018

Parliaments of Tajikistan, Uzbekistan vow to intensify cooperation

On November 20, Chairman of Tajikistan’s lower chamber (Majlisi Namoyandagon) of parliament (Majlisi Oli), Shukurjon Zuhurov, conferred with his Uzbek counterpart Nuriddinjon Ismailov, Chairman of the Legislative Chamber (Uzbekistan’s lower house of parliament), news.tj reports.

The two discussed issues related to inter-parliamentary cooperation between Tajikistan and Uzbekistan, Muhammadato Sultonov, a...

On November 20, Chairman of Tajikistan’s lower chamber (Majlisi Namoyandagon) of parliament (Majlisi Oli), Shukurjon Zuhurov, conferred with his Uzbek counterpart Nuriddinjon Ismailov, Chairman of the Legislative Chamber (Uzbekistan’s lower house of parliament), news.tj reports.

The two discussed issues related to inter-parliamentary cooperation between Tajikistan and Uzbekistan, Muhammadato Sultonov, a spokesman for the...

21.11.2018

OSCE Parliamentary Assembly delegation to visit Uzbekistan

At the invitation of the Chairman of the Senate of Oliy Majlis of the Republic of Uzbekistan Nigmatilla Yuldoshev, a delegation of the Parliamentary Assembly of the Organization for Security and Cooperation in Europe led by OSCE PA Chairman George Tsereteli will visit Uzbekistan on 20-24 November 2018.

According to the...

At the invitation of the Chairman of the Senate of Oliy Majlis of the Republic of Uzbekistan Nigmatilla Yuldoshev, a delegation of the Parliamentary Assembly of the Organization for Security and Cooperation in Europe led by OSCE PA Chairman George Tsereteli will visit Uzbekistan on 20-24 November 2018.

According to the...

Finance and Investment

21.11.2018

First International Tourism Investment Forum kicks off in Tashkent

Tashkent hosts the first International Investment Forum in Tourism Sphere at Uzexpocentre, which brought together more than 300 participants from 48 countries. These are investors, representatives of international financial institutions and organizations, experts of tourism industry, heads of large domestic and foreign companies.

The forum is organized by the State Committee...

Tashkent hosts the first International Investment Forum in Tourism Sphere at Uzexpocentre, which brought together more than 300 participants from 48 countries. These are investors, representatives of international financial institutions and organizations, experts of tourism industry, heads of large domestic and foreign companies.

The forum is organized by the State Committee...

21.11.2018

Euro follows greenback in retreat as cash investors turn to rival currencies

The euro fell from a two-week high on Tuesday as a selloff in world stock markets and nervousness about Italian banks fed through to the currency, while boosting the Swiss franc and Japanese yen.

Earlier, cautious comments overnight by Federal Reserve officials about the global economic outlook, weak U.S. data anda...

The euro fell from a two-week high on Tuesday as a selloff in world stock markets and nervousness about Italian banks fed through to the currency, while boosting the Swiss franc and Japanese yen.

Earlier, cautious comments overnight by Federal Reserve officials about the global economic outlook, weak U.S. data anda...

Oil and Gas Sector

21.11.2018

Oil benchmarks resume decline as supplies increase against pressured demand

Benchmark oil prices fell on Tuesday, set to snap a four-day winning streak amid concerns about rising global supplies as OPEC weighs production cuts.

Growing fears of an economic slowdown, which saw European and Asian stock markets tumble again, added further pressure on crude.

Brent crude futures, the international benchmark for oil...

Benchmark oil prices fell on Tuesday, set to snap a four-day winning streak amid concerns about rising global supplies as OPEC weighs production cuts.

Growing fears of an economic slowdown, which saw European and Asian stock markets tumble again, added further pressure on crude.

Brent crude futures, the international benchmark for oil...

21.11.2018

North Sea region natural gas prices on the rise following trade correction

British wholesale gas prices rose on Tuesday morning, following a strong sell-off the previous day.

 Gas for immediate delivery was up 1.00 pence at 65.50 pence per therm at 0845 GMT.

The contract fell to its lowest level since August on Monday due to an increase in Norwegian supply and expected liquefied...

British wholesale gas prices rose on Tuesday morning, following a strong sell-off the previous day.

 Gas for immediate delivery was up 1.00 pence at 65.50 pence per therm at 0845 GMT.

The contract fell to its lowest level since August on Monday due to an increase in Norwegian supply and expected liquefied...

Trade and Consumer Goods

21.11.2018

Uzbekistan-Azerbaijan trade turnover increases by almost 60%

Mutual trade between Uzbekistan and Azerbaijan grew by almost 60 percent over the first three quarters of 2018.

Uzbekistan significantly increased trade with the countries of the Central Asian Regional Economic Cooperation (CAREC) in the first three quarters of 2018, Uzbek media reported with reference to the words of the Minister...

Mutual trade between Uzbekistan and Azerbaijan grew by almost 60 percent over the first three quarters of 2018.

Uzbekistan significantly increased trade with the countries of the Central Asian Regional Economic Cooperation (CAREC) in the first three quarters of 2018, Uzbek media reported with reference to the words of the Minister...

Agriculture

21.11.2018

Uzbek farmers pledge to work honestly to prosecutors

Farmers from the Golodnaya Steppe pledged to work honestly exclusively for the good of the country, the Uzbek newspaper Syrdarya Pravda writes.

They made such an oath at the central square of Gulistan, the regional centre. It was received by the governor Gafur Mirzayev, employees of the prosecutor's office, the tax...

Farmers from the Golodnaya Steppe pledged to work honestly exclusively for the good of the country, the Uzbek newspaper Syrdarya Pravda writes.

They made such an oath at the central square of Gulistan, the regional centre. It was received by the governor Gafur Mirzayev, employees of the prosecutor's office, the tax...

21.11.2018

For the attention of businessmen, entrepreneurs and farmers who export agricultural products

The Ministry of Foreign Trade informs that mft.uz and tradeuzbekistan.com regularly publish information on the weighted average level of export prices for products.

Information on the weighted average level of export prices for fruits and vegetables is published on the official website of the Ministry...

The Ministry of Foreign Trade informs that mft.uz and tradeuzbekistan.com regularly publish information on the weighted average level of export prices for products.

Information on the weighted average level of export prices for fruits and vegetables is published on the official website of the Ministry of Foreign Trade of Uzbekistan, as...

21.11.2018

Uzbekistan intends to become a major exporter of poultry products in 2019

As follows from the resolution of the President of Uzbekistan dated November 13, 2018 “On additional measures for the further development of the poultry industry”, Uzbekistan plans to export poultry products in 2019 for $37 million. Moreover, 40% of future exports fall to the Tashkent and Samarkand regions ($9.1 and...

As follows from the resolution of the President of Uzbekistan dated November 13, 2018 “On additional measures for the further development of the poultry industry”, Uzbekistan plans to export poultry products in 2019 for $37 million. Moreover, 40% of future exports fall to the Tashkent and Samarkand regions ($9.1 and...

21.11.2018

Global grain benchmarks’ decline stopped by bargain hunters

U.S. soybeans, wheat and corn firmed on Tuesday, underpinned by buying interest after sharp falls in the previous session as uncertainty over the U.S./China trade dispute continued to weigh on the market.

“Soybeans, wheat and corn are being supported today by bargain-hunting after their sharp falls on Monday, but with the...

U.S. soybeans, wheat and corn firmed on Tuesday, underpinned by buying interest after sharp falls in the previous session as uncertainty over the U.S./China trade dispute continued to weigh on the market.

“Soybeans, wheat and corn are being supported today by bargain-hunting after their sharp falls on Monday, but with the...

Metals and Minerals

21.11.2018

Gold keeps market position on exposed equity

Gold firmed near a two-week peak on Tuesday, as a slide in stock markets offset an uptick in the dollar, with the metal holding a tight range in light trade ahead of the U.S. Thanksgiving holiday.

Spot gold rose 0.1 percent to $1,225.56 per ounce at 1237 GMT, having earlier hit...

Gold firmed near a two-week peak on Tuesday, as a slide in stock markets offset an uptick in the dollar, with the metal holding a tight range in light trade ahead of the U.S. Thanksgiving holiday.

Spot gold rose 0.1 percent to $1,225.56 per ounce at 1237 GMT, having earlier hit...

21.11.2018

Base metals up in London, down in Shanghai

London copper prices snapped a five-session winning streak on Tuesday as investors practiced caution amid mounting trade friction between the United States and China. While both U.S. President Donald Trump and Chinese President Xi Jinping expressed optimism about resolving their trade war ahead of a planned meeting at the G20...

London copper prices snapped a five-session winning streak on Tuesday as investors practiced caution amid mounting trade friction between the United States and China. While both U.S. President Donald Trump and Chinese President Xi Jinping expressed optimism about resolving their trade war ahead of a planned meeting at the G20...

Communications and Transportation

21.11.2018

Over 2,660 contracts concluded through Uzavtosavdo platform

As of 15 November 2018, more than 2,660 contracts for purchase of GM Uzbekistan cars have been concluded through the Uzavtosavdo platform.

On 7 November2018, Uzavtosanoat launched the Internet and mobile platform for purchase of GM Uzbekistan cars online - Uzavtosavdo.

With the help of the system, every resident and guests of...

As of 15 November 2018, more than 2,660 contracts for purchase of GM Uzbekistan cars have been concluded through the Uzavtosavdo platform.

On 7 November2018, Uzavtosanoat launched the Internet and mobile platform for purchase of GM Uzbekistan cars online - Uzavtosavdo.

With the help of the system, every resident and guests of...

Regional News

21.11.2018

Comprehensive infrastructure development to strengthen Central Asian economies, says scholar

Central Asian governments must consolidate their legal, regulatory, fiscal and physical infrastructures to enjoy greater economic development, said a prominent American scholar while on a recent visit to Astana.

Ariel Cohen, Atlantic Council Senior Fellow, International Tax and Investment Centre (ITIC) Energy, Growth and Security Programme Director and International Market Analysis...

Central Asian governments must consolidate their legal, regulatory, fiscal and physical infrastructures to enjoy greater economic development, said a prominent American scholar while on a recent visit to Astana.

Ariel Cohen, Atlantic Council Senior Fellow, International Tax and Investment Centre (ITIC) Energy, Growth and Security Programme Director and International Market Analysis...

21.11.2018

Second batch of Chinese SOEs chosen to optimise capital use via reforms

China will sel ect 10 centrally-administered State-owned enterprises as the second batch of pilot State-owned capital investment and operating companies to optimise capital use via diversified forms of operation, the country's top regulator for State assets said on Monday.

The government will encourage them to establish independent financial companies and apply...

China will sel ect 10 centrally-administered State-owned enterprises as the second batch of pilot State-owned capital investment and operating companies to optimise capital use via diversified forms of operation, the country's top regulator for State assets said on Monday.

The government will encourage them to establish independent financial companies and apply...

21.11.2018

Regulated system of shadow banking in China can benefit private firms

China’s private sector needs a little love, and Beijing is ready to give it. As mainland firms bear the brunt of the fallout from America’s trade war, regulators have instructed state-owned lenders to turn on the tap. The policy makes sense, if only banks knew how to implement it, that...

China’s private sector needs a little love, and Beijing is ready to give it. As mainland firms bear the brunt of the fallout from America’s trade war, regulators have instructed state-owned lenders to turn on the tap. The policy makes sense, if only banks knew how to implement it, that...

21.11.2018

Russian wheat exports up 29% to 19.2mt in marketing year to Nov 15

Russian wheat exports between July 1 and November 15 reached 19.2 million mt, up 29% on the year, agriculture ministry data showed Monday. The higher year-on-year pace reflects an earlier-than-usual harvest as a result of hot and dry weather, which prompted farmers to begin threshing much earlier than expected to...

Russian wheat exports between July 1 and November 15 reached 19.2 million mt, up 29% on the year, agriculture ministry data showed Monday. The higher year-on-year pace reflects an earlier-than-usual harvest as a result of hot and dry weather, which prompted farmers to begin threshing much earlier than expected to...

21.11.2018

Russia's economy in 2018 more resistant to oil prices fluctuations, says Central Bank

The Russian financial markets and the economy became more resistant to of in oil prices in 2018 in general, due to the budget rule among other reasons, First Deputy Governor of the Central Bank Ksenia Yudaeva said on Tuesday.

"We see that this year the markets and the economy turned out...

The Russian financial markets and the economy became more resistant to of in oil prices in 2018 in general, due to the budget rule among other reasons, First Deputy Governor of the Central Bank Ksenia Yudaeva said on Tuesday.

"We see that this year the markets and the economy turned out...

21.11.2018

Financial bigwigs ‘pessimistic’ on Russia, says poll

The number of pessimists among financial executives working in Russia has reached a record high since 2015. Financiers questioned by Deloitte say that businesses would be most negatively affected by VAT’s growth to 20% and sanctions, RBC wrote.

The poll conducted by Deloitte involved 80 financial executives, 55% of whom work...

The number of pessimists among financial executives working in Russia has reached a record high since 2015. Financiers questioned by Deloitte say that businesses would be most negatively affected by VAT’s growth to 20% and sanctions, RBC wrote.

The poll conducted by Deloitte involved 80 financial executives, 55% of whom work...

21.11.2018

Azerbaijan, Russia to develop gas fields in northern part of Caspian Sea

Azerbaijan and Russia will develop gas fields in the northern part of the Caspian Sea, according to a source in the Centralised Analytical Laboratory of the High Tech Park LLC of Azerbaijan’s National Academy of Sciences (ANAS).

The two countries will develop mothballed gas fields that Russia and Azerbaijan couldn’t use...

Azerbaijan and Russia will develop gas fields in the northern part of the Caspian Sea, according to a source in the Centralised Analytical Laboratory of the High Tech Park LLC of Azerbaijan’s National Academy of Sciences (ANAS).

The two countries will develop mothballed gas fields that Russia and Azerbaijan couldn’t use...

Prices and Statistics

21.11.2018

Commodities

Date: November 21, 2018; Source: Bloomberg.com Energy
INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EST) 2 DAY
CL1:COMWTI Crude Oil (Nymex) USD/bbl. 54.23 +0.80 +1.50% Jan 2019 11:45 PM
CO1:COMBrent Crude (ICE) USD/bbl. 63.49 +0.96 +1.54% Jan 2019 11:44 PM
XB1:COMRBOB Gasoline (Nymex) USd/gal. 150.55 +0.96 +0.64% Dec 2018 11:42 PM
NG1:COMNatural Gas (Nymex) USD/MMBtu 4.57 +0.05 +1.02% Dec 2018 11:44 PM
HO1:COMHeating Oil (Nymex) USd/gal. 200.64 +1.62 +0.81% Dec 2018 11:44 PM
Precious and Industrial Metals
INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EST) 2 DAY
GC1:COMGold (Comex) USD/t oz. 1,221.40 +0.20 +0.02% Dec 2018 11:44 PM
XAUUSD:CURGold Spot USD/t oz. 1,220.58 -1.08 -0.09% N/A 11:55 PM
SI1:COMSilver (Comex) USD/t oz. 14.30 +0.03 +0.18% Dec 2018 11:44 PM
HG1:COMCopper (Comex) USd/lb. 277.95 +0.30 +0.11% Mar 2019 11:42 PM
XPTUSD:CURPlatinum Spot USD/t oz. 842.11 -0.01 0.00% N/A 11:54 PM
Agriculture
INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EST) 2 DAY
C 1:COMCorn (CBOT) USd/bu. 373.25 +1.00 +0.27% Mar 2019 11:34 PM
W 1:COMWheat (CBOT) USd/bu. 509.00 +0.50 +0.10% Mar 2019 11:30 PM
CC1:COMCocoa (ICE) USD/MT 2,190.00 -16.00 -0.73% Mar 2019 1:29 PM
CT1:COMCotton #2 (ICE) USd/lb. 77.27 -0.16 -0.21% Mar 2019 11:44 PM
LC1:COMLive Cattle (CME) USd/lb. 119.73 -0.28 -0.23% Feb 2019 2:04 PM

Date: November 21, 2018; Source: Bloomberg.com

Energy

INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EST) 2 DAY
CL1:COMWTI Crude Oil (Nymex) USD/bbl. 54.23 +0.80 +1.50% Jan 2019 11:45 PM
CO1:COMBrent Crude (ICE) USD/bbl. 63.49 +0.96 +1.54% Jan 2019 11:44 PM
XB1:COMRBOB Gasoline (Nymex) USd/gal. 150.55 +0.96 +0.64% Dec 2018 11:42 PM
NG1:COMNatural Gas (Nymex) USD/MMBtu 4.57 +0.05 +1.02% Dec 2018 11:44 PM
HO1:COMHeating Oil (Nymex) USd/gal. 200.64 +1.62 +0.81% Dec 2018 11:44 PM

Precious and Industrial Metals

INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EST) 2 DAY
GC1:COMGold (Comex) USD/t oz. 1,221.40 +0.20 +0.02% Dec 2018 11:44 PM
XAUUSD:CURGold Spot USD/t oz. 1,220.58 -1.08 -0.09% N/A 11:55 PM
SI1:COMSilver (Comex) USD/t oz. 14.30 +0.03 +0.18% Dec 2018 11:44 PM
HG1:COMCopper (Comex) USd/lb. 277.95 +0.30 +0.11% Mar 2019 11:42 PM
XPTUSD:CURPlatinum Spot USD/t oz. 842.11 -0.01 0.00% N/A 11:54 PM

Agriculture

INDEX UNITS PRICE CHANGE %CHANGE CONTRACT TIME (EST) 2 DAY
C 1:COMCorn (CBOT) USd/bu. 373.25 +1.00 +0.27% Mar 2019 11:34 PM
W 1:COMWheat (CBOT) USd/bu. 509.00 +0.50 +0.10% Mar 2019 11:30 PM
CC1:COMCocoa (ICE) USD/MT 2,190.00 -16.00 -0.73% Mar 2019 1:29 PM
CT1:COMCotton #2 (ICE) USd/lb. 77.27 -0.16 -0.21% Mar 2019 11:44 PM
LC1:COMLive Cattle (CME) USd/lb. 119.73 -0.28 -0.23% Feb 2019 2:04 PM
21.11.2018

Exchange Rates

Date: November 21, 2018; Source: the Central Bank of Uzbekistan
1 US DOLLAR USD / UZS 8277.53
1 EURO EUR / UZS 9451.28
1 RUSSIAN ROUBLE RUB / UZS 125.56
1 ENGLISH POUND GBP / UZS 10625.87
1 KAZAKHSTAN TENGE KZT / UZS 22.40

Date: November 21, 2018; Source: the Central Bank of Uzbekistan

1 US DOLLAR

USD / UZS

8277.53

1 EURO

EUR / UZS

9451.28

1 RUSSIAN ROUBLE

RUB / UZS

125.56

1 ENGLISH POUND

GBP / UZS

10625.87

1 KAZAKHSTAN TENGE

KZT / UZS

22.40