Topic: Foreign trade policy and exchange rate policy Republic of Uzbekistan

Essay.

Topic: Foreign trade policy and exchange rate policy Republic of Uzbekistan.

Trade policies in today’s “flat world” (Thomas Friedman’s famous analogy to the supposed ‘evening’ effects of globalization) are an issue of utmost concern to developing countries because these policies dictate the terms on which Low developed countries (LDCs) will be integrated into the global economy. In fact, the development debate is often framed as “trade versus aid,” suggesting that participation in global markets is sufficient for LDCs to begin to climb the development ladder and address poverty among their citizens. In reality, trade is just one more tool for development and is closely related to the other instruments discussed.

In Uzbekistan we can see high developed foreign trade policy. Export operations are higher than import. We can see in 2015 export was the highest than other years. It was approximately 17500 mln dollar while this indicator was the lowest in 2016 with 12000 mln dollar. In Uzbekistan export is high with mineral oil and other goods while this indicator is worse in machine, transport export and other different products.

Eksport indicators for products in years. 1^st graph.

Import indicators from 2015 to 2020. 2^nd graph.

In general, it is plain from the 2^nd graph that the import was owerall nearly 24000mln dollar in 2015, while this indicator was more than 10000 in 2016. If we see import in products, machines and transport was higher than than other goods and services’ import. In addition, pants and animals’ import was near to zero.

Import indicators from countries. 3^rd graph.

I want to compare import indicators between 6 countries that Uzbekistan and other 6 countries’ foreign trade policy from 2016 to 2020. This graph indicating that Uzbekistan’s trade policy is more higher with China with 5000000mln dollar in 2019. Import rate decreased in 2020 from 5000000 to 4500000. Import products from Turkey and Germany was higher during years than Frans, India and UAA with around 1000000mln dollar.

Overall foreign trade policy. 4^th graph.

In 4^th graph foreign trade exchange reached a peak with about 41000mln $ in 2019, however it decreased of 5000 in 2020. In addition trade balance was approximately -5000 from 2018 to 2020. The graph registered that import was higher than export during 4 years, however in 2015 and 2016 these rates were equal to about 12000mln dollar.

Since 5 September 2017 the Central Bank of the Republic of Uzbekistan (CBU) stopped administratively setting the exchange rate and devalued the official rate by 48 per cent to Sum 8,100 to 1 US dollar from Sum 4,210 to 1 US dollar set previously. Interventions serve only to prevent large fluctuations.

5^th graph. Currencies.

According to Central bank of Uzbekistan, in 12.12.2021 1 US Dollar equals to 10795,73 UZS which increased of 13,49 from 11.12.2021 exchange rate. According to 12.12.2021 data, only pound sterling decreased to 14256,84.