Theory of economics

Tasks and functions of the Central Bank of the Republic of Uzbekistan

The central bank is the central bank of the system, conducting monetary policy, issuing processes, and ensuring the stability of the national currency. On December 21, 1995, the Law "On the Central Bank of the Republic of Uzbekistan" was adopted. The status and objectives of the Central Bank are defined in Article 1 of this Law:

“The Central Bank of the Republic of Uzbekistan is a legal entity and is the only state property. The Central Bank of the Republic of Uzbekistan is an economically independent institution that carries out its expenses from its own revenues, has a seal with the image of the State Emblem of the Republic of Uzbekistan and its name.

Article 3 of the law states that "the main purpose of the Central Bank is to ensure the stability of the national currency." This goal, which aims to ensure price stability and stabilize the exchange rate of the national currency in foreign exchange markets, underscores the role of the Central Bank of the Republic of Uzbekistan in the economic policy of the country.

The efficiency of monetary circulation and the reliability of financial institutions in the country require the need to legally strengthen its independence in the development and implementation of monetary and foreign exchange policy strategies and tactics. Regulation of the country's lending indicators by setting the volume and interest rates on refinancing of commercial banks, implementation of monetary policy, control over the activities of commercial banks Independent political sphere of the Central Bank of the Republic of Uzbekistan is calculated. Independent policy is based on the analysis of the situation in the money and foreign exchange markets, macroeconomic conditions in the domestic market, external factors. This is stated in Article 6 of the Law, which states that "the Central Bank is independent in making decisions within its competence." The Central Bank of the Republic of Uzbekistan shall report to the Oliy Majlis of the Republic of Uzbekistan. On the recommendation of the President of the Republic of Uzbekistan, the Oliy Majlis shall appoint and dismiss the Chairman of the Central Bank of the Republic of Uzbekistan.

According to Article 2 of the Law, the Central Bank of the Republic of Uzbekistan as a legal entity owns real estate and financial resources. This will strengthen its financial independence and allow it to pursue an independent monetary policy effectively.

Various factors that affect prices and exchange rates and are not under the direct control and influence of the Central Bank of the Republic of Uzbekistan may complicate the achievement of the main goal of the Central Bank of the Republic of Uzbekistan. However, foreign experience shows that it is the Central Bank that manages the development of macroeconomic processes, primarily the rate of devaluation of the currency and the exchange rate.

In addition to giving powers to the Central Bank of the Republic of Uzbekistan, the law clearly defines the types of activities prohibited for it. For example, the Central Bank of the Republic of Uzbekistan is prohibited from engaging in commercial activities, providing financial assistance to institutions or organizations.

 The Central Bank of the Republic of Uzbekistan is not allowed to participate in the activities of enterprises and organizations as banks and legal entities. The Central Bank of the Republic of Uzbekistan must treat all legal entities equally in the exercise of its powers.