The Central Bank of Uzbekistan intends to gradually increase the assortment of assets into which the country's international reserves are invested. The regulator plans to move beyond US treasury bonds and consider other highly liquid instruments while maintaining priorities of safety and liquidity.
Deputy Chairman of the Central Bank Abror Mirzo Olimov announced this on September 18 at the International Forum on Public Asset Management in Tashkent. As of early September, the Central Bank held about 439 tons of gold, valued at approximately 65 billion US dollars at market prices, with gold accounting for about 90% of the country's international reserves.
Olimov emphasized that the high share of gold is due not only to the regulator's decisions. Uzbekistan produces about 120 tons of gold annually, and the Central Bank has the priority right to purchase it. The Deputy Chairman of the Central Bank explained that the large share of gold in reserves is a consequence of the structure of the economy, the ecosystem of domestic gold production, and historically accumulated reserves.
Over the past five years, Uzbekistan's international reserves have almost doubled—from approximately 35 billion dollars in 2021 to over 72 billion dollars. During the same period, gold reserves grew from 360 to 439 tons, and the share of gold in reserves increased from about 60% to 90%. According to Olimov, the growth in the share of gold reflects a combination of increased physical reserves and rising global metal prices.
The Deputy Chairman also noted that gold will play an increasingly significant role in global international reserves. He mentioned that over the last four years, central banks have been acquiring more than 1000 tons of gold annually, which is about twice as much as in previous decades. In light of this, the problem for regulators is no longer about including gold in reserves, but about determining its optimal share and approaches to managing such assets.
As of September 1, Uzbekistan's international reserves exceeded 72 billion dollars. The Central Bank indicated that this amount is approximately 3.4 times the IMF's minimum benchmark, covers about 14 months of imports, and exceeds the country's short-term external debt by 4.4 times.
Olimov stated that the main task in reserve management is now not just accumulating a large buffer, but how to manage such a volume of reserves. The Central Bank is guided by three main priorities: first, safety and capital preservation; second, liquidity; and third, profitability. The regulator clarified that the goal is not profit maximization, but improving returns while considering risk within clearly defined safety and liquidity constraints.
Furthermore, the relationship between purchasing gold from domestic producers and managing internal liquidity was discussed. Producers mine and process gold, after which the Central Bank purchases it in national currency and adds the obtained metal to international reserves. Payments to producers in sums increase liquidity in the economy, which the Central Bank sterilizes using monetary policy tools, as well as open market and foreign exchange market operations.
As reserves grow, the Central Bank is gradually changing its approach to managing them. If the main focus was previously on accumulation, the emphasis is now shifting towards portfolio management. Since 2020, the Central Bank has been cooperating with the World Bank under the Reserve Asset Management Partnership (RAMP) program. The regulator has also begun investing part of the reserves in fixed-income instruments. Initial amounts of such investments were small but have been gradually increasing.
Olimov added that the next step for the Central Bank is to expand the range of investment instruments. In addition to US treasury bonds, the regulator is considering sovereign bonds, bonds issued by subnational authorities, and other fixed-income instruments. However, he warned that diversification should not automatically mean taking on more risk. He stressed that before taking on additional risks, one must possess the appropriate institutional capacity—to understand, measure, and manage these risks.
During the 2026–2027 period, the Central Bank is working with international financial institutions on strategic asset allocation, investment policy and strategy, as well as developing an independent risk management system. Olimov emphasized that there is no universally optimal structure for international reserves applicable to all countries; the structure depends on economic characteristics, state obligations, the need for foreign exchange interventions, the structure of the domestic market, the acceptable level of risk, and the regulatory body's institutional capacity.
As of September 1, the securities portfolio in Uzbekistan's international reserves amounted to about 1.77 billion US dollars, or approximately 2.4% of total reserves. In August, it increased by only 3.4 million dollars, reaching 1.766 billion dollars. For comparison, in July, the portfolio decreased by approximately 1.1 billion dollars, or almost 40%, from 2.86 billion dollars to 1.76 billion dollars. According to the source, this was the first such decrease since the introduction of securities into the structure of international reserves.
