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Another pressing issue in improving the monetary policy pursued by the
Central Bank of the
Republic of Uzbekistan is the high level of required reserves.
The reserve requirement set by the Central Bank for foreign currency deposits
of commercial banks is 14%. This is a very high rate, on top of which the amount of
required reserves for foreign currency deposits is converted into soums at the
exchange rate of the national currency and withdrawn from the representative account
of banks in soums "Nostro". As a result, there is a strong negative impact on the
liquidity of commercial banks.
The amount of required reserves can be left in the correspondent account of
commercial banks "Nostro", but the Central Bank of the Republic will deduct the
amount of required reserves from the representative account of banks [11; 12; 13;
14].
In developed countries, there are no problems with the Central Bank's required
reserve policy. This is because the reserve policy is not the main instrument of
monetary policy in these countries.
One of the most pressing issues in improving monetary policy is the high level
of volatility of the national currency - the nominal exchange rate of the soum.
