Central Bank of the Republic of Uzbekistan
Encyclopedia
The Central Bank of Uzbekistan, officially the Central Bank of the Republic of Uzbekistan , is the country's national bank
.
represents a centralized control system. For the performance of assigned tasks it creates the appropriate services and establishments, which work on the basis of rules confirmed by the Board
of the Central Bank.
The structure and bodies of management of the Central Bank are determined by the Law “On the Central Bank”. The supreme body of the Central Bank is the Board of the Central Bank. The Board consists of 11 members and is headed by the Chairman who is, at the same time, Chairman of the Central Bank. The Board of the Central Bank is allocated large powers by definition and regulation of the basic directions of monetary policy
and development of the banking system.
The international cooperation has allowed the bank to begin realization of the received credits on transformation system, maintenance of balance of payments
, financing of private business, institutional and rehabilitation loan
s, and others.
There is a special working group, including an IMF representative, which is in charge of implementing further liberalization of the exchange market. The basic task of the working group is the creation of conditions, and development of a strategy, for maintenance of the convertibility
of the Uzbek som on the current international operations.
The positive results of work with the international financial organizations opens new prospects for the realization of joint projects together with various economic institutes and large banks of the world.
and other worldwide banks.
to market mechanism, is stabilization and structural transformation. An ultimate goal is the improvement of economic growth
, full employment
, price stability and sustainability of the balance of payments
.
After getting independence, Uzbekistan has faced a few difficulties about the realization of macroeconomic reforms to overcome inflationary processes
and a decline in manufacturing
to create adequate conditions for the financial system.
The Central Bank is the depository of the international financial organizations. The Central Bank is accountable to the Supreme Council of the Republic of Uzbekistan and independent of the executive bodies.
The basic functions of the Central bank are development and realization of economic policy of the state in the field of money circulation, crediting, financing, accounting, exchange relations, monetary system management of the Republic of Uzbekistan.
The task of maintenance of money circulation stability and solvency of money in the territory of the republic is performed by the Central Bank by management of money turnover, regulation structure of money supply. The Central Bank issues money to circulation and conducts forecasting of money turnover.
Central bank
A central bank, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system of their respective countries...
.
Structure of the Central Bank
The Central Bank of the Republic of UzbekistanUzbekistan
Uzbekistan , officially the Republic of Uzbekistan is a doubly landlocked country in Central Asia and one of the six independent Turkic states. It shares borders with Kazakhstan to the west and to the north, Kyrgyzstan and Tajikistan to the east, and Afghanistan and Turkmenistan to the south....
represents a centralized control system. For the performance of assigned tasks it creates the appropriate services and establishments, which work on the basis of rules confirmed by the Board
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
of the Central Bank.
The structure and bodies of management of the Central Bank are determined by the Law “On the Central Bank”. The supreme body of the Central Bank is the Board of the Central Bank. The Board consists of 11 members and is headed by the Chairman who is, at the same time, Chairman of the Central Bank. The Board of the Central Bank is allocated large powers by definition and regulation of the basic directions of monetary policy
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting a rate of interest for the purpose of promoting economic growth and stability. The official goals usually include relatively stable prices and low unemployment...
and development of the banking system.
Cooperation with international financial organizations
There is integration of the Republic of Uzbekistan and its Central Bank in the world community. The Central Bank maintains Mutual cooperation with:- International Monetary FundInternational Monetary FundThe International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF) - World BankWorld BankThe World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
- European Bank for Reconstruction and DevelopmentEuropean Bank for Reconstruction and DevelopmentFounded in 1991, the European Bank for Reconstruction and Development uses the tools of investment to help build market economies and democracies in 30 countries from central Europe to central Asia. Its mission was to support the formerly communist countries in the process of establishing their...
- Asian Development BankAsian Development BankThe Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...
The international cooperation has allowed the bank to begin realization of the received credits on transformation system, maintenance of balance of payments
Balance of payments
Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world.These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers...
, financing of private business, institutional and rehabilitation loan
Loan
A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower....
s, and others.
There is a special working group, including an IMF representative, which is in charge of implementing further liberalization of the exchange market. The basic task of the working group is the creation of conditions, and development of a strategy, for maintenance of the convertibility
Convertibility
Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Convertibility is an important factor in international trade, where instruments valued in different currencies must be exchanged....
of the Uzbek som on the current international operations.
The positive results of work with the international financial organizations opens new prospects for the realization of joint projects together with various economic institutes and large banks of the world.
Relations with other national banks
The Central bank of Uzbekistan has been active in developing good relations with other national banks. Besides operational communications, the Central Bank receives support in training the experts and consulting services from the correspondents. There are most fruitful relations with:- Deutsche BankDeutsche BankDeutsche Bank AG is a global financial service company with its headquarters in Frankfurt, Germany. It employs more than 100,000 people in over 70 countries, and has a large presence in Europe, the Americas, Asia Pacific and the emerging markets...
- Deutsche BundesbankDeutsche BundesbankThe Deutsche Bundesbank is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks . Due to its strength and former size, the Bundesbank is the most influential member of the ESCB. Both the Deutsche Bundesbank and the European Central Bank are...
(GermanyGermanyGermany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
) - UBS BanksUBS AGUBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
and Credit SuisseCredit SuisseThe Credit Suisse Group AG is a Swiss multinational financial services company headquartered in Zurich, with more than 250 branches in Switzerland and operations in more than 50 countries.-History:...
(SwitzerlandSwitzerlandSwitzerland name of one of the Swiss cantons. ; ; ; or ), in its full name the Swiss Confederation , is a federal republic consisting of 26 cantons, with Bern as the seat of the federal authorities. The country is situated in Western Europe,Or Central Europe depending on the definition....
) - Bank of EnglandBank of EnglandThe Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694, it is the second oldest central bank in the world...
- Bank of France
- Bank of IndiaBank of IndiaBank of India is a state-owned commercial bank with headquarters in Mumbai. Government-owned since nationalization in 1969, It is India's 4th largest bank, after State Bank of India, Punjab National Bank and Bank of Baroda. It has 3415 branches, including 29 branches outside India...
and other worldwide banks.
Exchange policy of the Central Bank
The main purpose of transition, in the transition period from planned economyPlanned economy
A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency...
to market mechanism, is stabilization and structural transformation. An ultimate goal is the improvement of economic growth
Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
, full employment
Full employment
In macroeconomics, full employment is a condition of the national economy, where all or nearly all persons willing and able to work at the prevailing wages and working conditions are able to do so....
, price stability and sustainability of the balance of payments
Balance of payments
Balance of payments accounts are an accounting record of all monetary transactions between a country and the rest of the world.These transactions include payments for the country's exports and imports of goods, services, financial capital, and financial transfers...
.
After getting independence, Uzbekistan has faced a few difficulties about the realization of macroeconomic reforms to overcome inflationary processes
Inflation
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation also reflects an erosion in the purchasing power of money – a...
and a decline in manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
to create adequate conditions for the financial system.
Functions of the Central Bank
"The Central Bank of the Republic of Uzbekistan is the state issuing and reserve bank. The Central Bank is authorized by the Constitution of the Republic of Uzbekistan. The Central Bank cooperates with national and Central Banks of other states on the basis of intergovernmental and interbank agreements. The Central Bank of the Republic of Uzbekistan has 14 regional branches, functioning in regions of the country."The Central Bank is the depository of the international financial organizations. The Central Bank is accountable to the Supreme Council of the Republic of Uzbekistan and independent of the executive bodies.
The basic functions of the Central bank are development and realization of economic policy of the state in the field of money circulation, crediting, financing, accounting, exchange relations, monetary system management of the Republic of Uzbekistan.
The task of maintenance of money circulation stability and solvency of money in the territory of the republic is performed by the Central Bank by management of money turnover, regulation structure of money supply. The Central Bank issues money to circulation and conducts forecasting of money turnover.