Uzbekistan's central bank said on Saturday it had decided to raise the refinancing rate, starting from June 28, to 14 percent from 9 percent. The first refinancing rate change since early 2015 comes weeks after Uzbekistan's upper chamber of parliament appointed new central bank chairman, replacing the previous one who died in May after serving as the central bank's head for 26 years.
The decision was caused by rising inflation and the need to limit higher inflation risks, the central bank said in a statement on its website www.cbu.uz. "The refinancing rate will be revised downward when prices stabilise in the consumer market and inflation risks are reduced," it added.
Uzbekistan's sum currency accelerated its slide against the dollar in early March as official devaluations fed through into the black market and uncertainty persisted over government plans to liberalise the foreign exchange regime. In May, Uzbekistan's foreign minister urged the Central Asian nation's parliament to step up foreign exchange system reforms in order to make the sum fully convertible and bring in much-needed foreign investment.