The Central Bank of Uzbekistan has nearly tripled the volume of securities in its gold and foreign currency reserves, reaching $101 mln as of November 1, according to the regulator’s monthly statistics.
The Central Bank can include foreign securities issued or guaranteed by foreign governments, banks, or international financial institutions in its gold and foreign exchange reserves.
In the summer of 2022, the bank announced it would begin purchasing U.S. Treasury bonds. This decision was made to reduce dependence on gold prices by bolstering reserves with U.S. securities.
However, from June 2022 to November 2024, the share of precious metals in the Central Bank’s international reserves rose from 60% to 77%. Meanwhile, the physical volume of gold remained nearly unchanged, increasing from 11.4 to 12 mln ounces.
After several months of rising gold prices, there was a correction following Donald Trump‘s victory in the U.S. presidential election.
Analysts suggest that the Federal Reserve System (Fed) may adopt a tighter monetary policy under the new president.
In such a scenario, gold could become a less attractive asset for investors, while Treasury bond yields may rise.
Kursiv Uzbekistan also reports that Uzbekistan’s foreign exchange reserves reached a record $43.1 bln.
