Gold price surge boosts Uzbekistan’s foreign exchange reserves, yet gold volume

As of April 1, 2024, Uzbekistan’s official reserve assets totaled $34.19 billion, marking a 6.2% increase, with a $1.99 billion surge in March, as reported by the Central Bank.

According to the regulator’s data, foreign currency reserves increased by $710.7 million to $8.26 billion last month. However, foreign currency reserves have fallen by $1.1 billion since the beginning of the year, primarily due to sovereign Eurobond debt repayment of $500 million issued by the country in 2019.

Amidst a sharp surge in gold prices, the value of the gold reserve in the Central Bank escalated by $1.28 billion to $25.37 billion. Simultaneously, the physical volume decreased by 0.35 million troy ounces (10.9 tons) to 11.5 million troy ounces (357.7 tons), marking the lowest figure since May 2022 (11.42 million).

In March, gold prices surged from $2,055 to $2,246 per ounce, marking a 9.3% growth, and continue to reach historic highs. For instance, on April 8, prices surpassed $2,335.

By the end of 2023, the country’s “financial cushion” experienced a $1.2 billion decrease, totaling $34.56 billion. This decline in reserves marked the first occurrence since 2018. Additionally, the physical volume of gold decreased by almost 25 tons over the year.