Uzbekistan Quality Job Creation as a Cornerstone for Sustainable Economic Growth

 Macroeconomic Performance, Opportunities, and Challenges
3
The government has already implemented a number of reform initiatives. 
The most significant measure by far was the unification of the exchange rate 
in September 2017. The sum depreciated by about 50%, from SUM4,210 
per dollar to SUM8,067 per dollar (Figure 1.1). This led to the immediate 
disappearance of the black market premium. The exchange rate regime is now 
floating, de jure, but is actually de facto a stabilizing arrangement (IMF 2018). 
Effectively, there are no more restrictions on currency convertibility and the 
repatriation of profits, which is a boost to Uzbekistan’s attractiveness from the 
viewpoint of foreign investors. 
Uzbekistan has also become active in trade policy. The average tariff rate stood 
at 30% as of July 2017 (International Trade Administration 2017), which is one 
of the highest in the world. There are signs that the government is committed 
to push for integrating the Uzbek economy into world markets. Most significant 
in this regard is the resumption of negotiations for Uzbekistan to accede to the 
World Trade Organization. Furthermore, effective 1 October 2017, Uzbekistan 
reduced import duty rates for 1,154 commodity items, of which about half were 
set at zero. In 2018 the authorities canceled duties on imports of vehicles for 
transporting agricultural products, electric vehicles, and cars produced no 
longer than 2 years ago and worth more than $40,000. More gradual tariff 
reductions for cars and other items are expected in 2019. Uzbekistan also 
plans to eliminate tariffs on textile imports from the European Union. 
Figure 1.1: Uzbekistan’s Exchange Rate, 2013–2019
(SUM/$)
SUM = Uzbekistan sum.
Source: Central Bank of the Republic of Uzbekistan Statistics. http://www.cbu.uz/en/statistics/dks/ 
(accessed 11 November 2019). 
SUM/$
0
3,000
2,000
1,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2013–01
2013–06
2018–01
2018–06
2013–11
2018–11
2016–05
2016–10
2017–03
2017–08
2014–04
2014–09
2019–04
2019–09
2015–02
2015–07
2015–12
Year-month

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