Uzbekistan’s international reserves increased from $66.3bn (€55.9bn) on 1 January to around $75bn (approximately €63.2bn) by 1 February, according to data published by the Central Bank of Uzbekistan.
Gold accounted for around 85% of total reserves during that period.
Global position in gold holdings
Data from the World Gold Council indicates that Uzbekistan holds 380.4 tonnes of gold, ranking 17th globally in terms of official gold reserves.
According to the same source, the largest gold holders are the United States with 8,133.5 tonnes, Germany with 3,350.3 tonnes, Italy with 2,451.9 tonnes, France with 2,437.0 tonnes and Russia with 2,326.5 tonnes.
The World Gold Council also lists Uzbekistan among the world’s top ten gold-producing countries.
“We do not pursue any specific ranking or ratings when we hold gold reserves,” said Kamol Alimuhammedov, Acting Director of the International Reserves Management Department at the Central Bank of Uzbekistan.
“Our main principle is the safety of our international reserves,” he continued.
Reserve management principles
According to the Central Bank, reserve management follows the International Monetary Fund’s (IMF) framework based on three key principles, namely safety, liquidity and profitability.
The Bank explained that safety and liquidity take precedence over return considerations.
During periods of volatility in global gold markets, the Central Bank says it adheres to the Law on the Central Bank and to international reserve management standards. Its decisions are based on long-term considerations rather than short-term price fluctuations.
Unlike many countries that store part of their gold abroad, Uzbekistan keeps its physical gold reserves domestically.
“We keep all our gold reserves here in Uzbekistan, stored in the Central Bank vaults,” Alimuhammedov said. “That allows us to eliminate custodian-related or default-related risks and removes credit risks associated with foreign storage.”
Domestic gold purchases and liquidity management
Under Uzbek legislation, the Central Bank has a priority right to purchase domestically produced gold. Refiners are required to offer their output to the Bank.
“When we purchase locally produced gold, we issue a large amount of sums into the economy,” Alimuhammedov explained. “This creates inflationary pressure which we need to tamper.”
To offset this effect, the Central Bank applies what it describes as a neutrality principle.
“We sell some portion of our foreign exchange on the local currency market, thereby sterilising the excess liquidity,” he said.
The Bank stated that such foreign exchange operations are aimed at neutralising the monetary impact of gold purchases rather than targeting a specific exchange rate level.
According to the Central Bank, a core element of the strategy is maintaining a relatively stable physical volume of gold, avoiding abrupt increases or reductions.
Diversification measures
Despite gold representing between 83% and 85% of reserves, the Central Bank reports that it has taken steps to diversify reserve assets.
In 2020, Uzbekistan joined the World Bank’s Reserve Advisory and Management Program (RAMP), receiving technical assistance and training in reserve management and fixed-income investment strategies.
In 2024, the Central Bank began investing in United States Treasury securities.
“We started investing in US treasuries in 2024,” Alimuhammedov says. “As of today, we have built up a sizable portfolio of short-term US Treasuries, which stands at around $1.5 billion (€1.26bn).”
He added that US treasuries "are highly liquid and considered virtually risk-free by market participants. You can sell them anytime to raise liquidity.”
In addition, the Central Bank states that it has diversified foreign exchange deposits across 16 countries and 35 highly rated international banks.
Reserve adequacy indicators
The Central Bank reports that Uzbekistan’s reserves exceed commonly used international adequacy benchmarks.
According to IMF guidelines, reserves should cover at least three months of imports. The Central Bank highlighted that Uzbekistan’s reserves cover 17 months of imports.
International standards also require reserves to cover 100% of short-term external debt due within one year. The Bank reports that Uzbekistan’s reserves cover 4.4 times its short-term debt obligations.
Under the IMF’s Assessing Reserve Adequacy (ARA) metric, the Central Bank states that Uzbekistan’s reserves stand at 3.4 times the recommended threshold.
“Uzbekistan stands well within the required standards of reserve adequacy,” Alimuhammedov said. “We are well covered against foreseeable external shocks whether from balance of payments pressures, government debt obligations, or monetary policy needs.”
According to the Central Bank, current reserve levels are designed to provide external liquidity buffers and to support macroeconomic policy objectives, while diversification efforts aim to gradually broaden the reserve asset base beyond gold.
