In-depth Analysis of Money-Credit Policy of Uzbekistan in 2017

2014	2015
2016
FDI Inward Flow (million USD)	632	65	67
FDI Stock (million USD)	8,825	8,890	8,957
FDI Stock (in % of GDP)	14	13.6	13.5

Source: [ CITATION San17 \l 1033 ]
Due to the implementation of socio-economic development programs of the country and its regions, including the implementation of the projects envisaged by these programs and accelerated efforts to attract the population to entrepreneurship, the growth of commercial banks’ lending activity was observed. This, in turn, led to a significant increase in money supply and demand in the economy in January-June this year and, as a result, accelerated the rate of inflation. The inflation rate in Uzbekistan was around 4.4 % in 2006-2016 on average, yet increased to 5.7 % in 2016[ CITATION Tra17 \l 1033 ].
Measures to liberalize the foreign exchange market in the second half of the year required a drastic change in the macroeconomic conditions of monetary policy implementation. In order to strengthen the economic basis of the effectiveness of monetary policy, CBU continued the liberalization of the foreign exchange market which serves to accelerate the process of transformation of non-bank monetary resources through the banking system.
The changes in the macroeconomic conditions required the implementation of monetary policy measures in order to liberalize the currency market in the second half of the year. In order to increase the effectiveness of economic and monetary policy, CBU funded commercial banks through banking system so they can accelerate and strengthen the process of money circulation.