Introduction to Uzbekistan’s International Reserves
As of November 1, 2025, Uzbekistan’s international reserves have reached nearly $60 billion, with over 80% comprised of gold. The Central Bank has started to diversify its assets, having invested approximately $1 billion in U.S. Treasury bills. These figures were shared by Abror Mirzo Olimov, the Deputy Chairman of the Board of the Central Bank, during the international roundtable titled "The Role of a Floating Exchange Rate in an Inflation-Targeting Regime", which took place in Tashkent on November 27, 2025.
The Purpose of Reserves and Basic Management Guidelines
At the beginning of his speech, Abror Mirzo Olimov addressed the philosophy of reserve management. According to the IMF guidelines, there are three key functions of international reserves. First, they support and strengthen monetary and foreign exchange policy. Second, they help mitigate external vulnerabilities and prepare for external shocks. And third, they give markets confidence that the country is capable of meeting its external obligations today and in the future.
Uzbekistan builds its reserve management on three principles: security, liquidity, and profitability. The priority is, above all, security, then liquidity, and only then profitability. Because the country manages a large number of assets that must generate income, the principle of profitability should only be observed when the principles of safety and liquidity are met.
The Reserves Have Nearly Doubled Over the Past Five Years
According to the Central Bank, Uzbekistan’s international reserves increased from $29 billion in 2020 to almost $60 billion as of November 1, 2025. The key reason for this growth is not the accumulation of foreign currency, but rather a significant rise in the price of gold. The physical gold holdings have remained relatively unchanged at about 12 million troy ounces. However, the price of gold has soared from around $1,500 in 2020 to over $4,000 today.
As a result, the value of the gold stock reached around $48 billion, the share of gold in reserves rose to 81%, and the foreign currency component decreased to 17%. Gold’s share in reserves has been steadily increasing: 56% in 2020, 60% in 2022, 64% in 2023, 71% in 2024, and 81% in 2025.
Gold as a "Safe Haven"
The growing role of gold is not only an Uzbekistan-specific trend. Globally, the share of gold in central banks’ international reserves has risen from 10% to 27% compared with 2018. In recent years, gold has regained its significance amid global economic uncertainty, tensions between countries, and political instability in some regions. When such factors are at play, investors try to hedge their assets against inflation and market volatility. In such times, gold serves as a safe haven asset, and investors always invest in gold.
Evaluating the Sufficiency of Uzbekistan’s Reserves
Another part of the speech focused on the adequacy of reserves. According to the Deputy Chairman, reserves are projected to cover 12 months of imports by November 2025, which exceeds the recommended minimum of 3 months. The coverage of short-term external debt is 3.5 times higher than the minimum threshold of 100%. Additionally, the ARA EM indicator, according to IMF methodology, is 3.2 times above the minimum threshold. Reserves-to-GDP ratio stands at 32%, with the decline attributed to faster economic growth.
Reasons Behind the Central Bank’s Investment in U.S. Treasury Bills
The Central Bank began allocating part of its reserves to debt securities in 2024, with an initial investment volume of $35 million, which was later increased to $1 billion. The bank started with U.S. Treasury bills because this is the most liquid market in the world, with a deep structure, high transparency, and a wide range of maturities. Although the Federal Reserve is cutting rates, the market value of Treasury bills is rising, resulting in a higher total return from market value and yield.
Diversification and Digital Transformation
Since 2020, the Central Bank of Uzbekistan has been consistently reforming its reserve management system. The bank has acceded to the World Bank’s RAMP programme, established an investment committee in 2023, started asset diversification in 2024, and prepared an RFP for the introduction of a new IT system. The bank plans to invest in other types of assets, such as corporate bonds or bonds of other international financial institutions, once the integration of its IT system is complete.
Conclusion
In conclusion, Uzbekistan’s international reserves have reached nearly $60 billion, with a significant portion comprised of gold. The Central Bank has started to diversify its assets, investing in U.S. Treasury bills, and plans to invest in other types of assets in the future. The bank’s reserve management is based on three principles: security, liquidity, and profitability. With the World Bank’s advice to allow its exchange rate to float freely, Uzbekistan is taking steps to reform its reserve management system and ensure the stability of its economy.
