In Almaty, Kazakhstan, Uzbekistan buys gold at low pricesZarcasinofreespins2022todayThe strategy has achieved huge sales. MHMarkets Maihui pointed out that gold sales in Uzbekistan are very high at present. Uzbekistan became the world's largest gold seller in March, selling 11 tons, second only to Thailand's 10 tons, according to the World Gold Council.

Although most central banks are accumulating precious metals, it is logical that Uzbekistan has chosen to sell gold in response to economic pressure. MHMarkets Mai Hui believes that Uzbekistan faces a trade and budget deficit and other exports are not performing well. In addition geopolitical instability has led to a rise in the price of gold which further complicates the economic situation in Uzbekistan.

Although Uzbekistan has made significant economic reforms in recent years, its reliance on gold sales highlights the continuing problems of its economy. As the second-largest gold producer in the former Soviet Union, Uzbekistan's economy has long been dependent on gold. The share of gold in international reserves increased from less than 50 per cent in 2016 to nearly 2/3 under President Shavkat Mirziyoyev.

In November 2022, Uzbekistan was one of the largest buyers of gold in the world. Spot gold prices have risen more than 13 per cent since January. Uzbekistan's central bank gold reserves increased by more than 6% in March, while physical gold bar stocks fell by 10%.Zarcasinofreespins2022today.9 tons to 357Zarcasinofreespins2022today.7 tons, the lowest in nearly two years. As of May 1, Uzbekistan's foreign exchange reserves stood at 34.2 billion US dollars, of which gold was about 26.5 billion US dollars.

High gold prices have helped ease the pressure on Uzbekistan to repay $1 billion of Eurobonds issued in 2019. Smeer Ospanov, a former Uzbek official, said gold sales enabled the government to cover up lax budget discipline and limited economic reforms.

Uzbekistan replenishes its finances by selling gold, which shows that its economy faces serious challenges. Although exports have grown by 24 per cent in recent years, they have relied mainly on record gold sales, which reached $8 billion, accounting for 1/3 of total exports.

Uzbekistan's national debt as a share of GDP has risen sharply over the past five years, from 10 per cent of GDP to more than 1/3. Fitch reiterated Uzbekistan's BB- stability prospects in February, but warned of structural weaknesses such as high reliance on commodities, low GDP per capita and lack of competitiveness. This strategy also relieves monetary pressure by buying gold from the domestic currency Somme and then selling it in dollars on the international market.

Since Russia's full-scale invasion of Ukraine, the Somme has depreciated by nearly 15 per cent, higher than the currencies of neighboring Kazakhstan, Kyrgyzstan and Tajikistan. War in the Middle East and geopolitical tensions could keep gold prices high in the future.

MHMarkets Mai Hui believes that the main problem facing Uzbekistan is not gold sales itself, but the lack of alternative sources of income. In March, the Uzbek Ministry of economy and Finance said the annual budget deficit reached $5 billion, accounting for more than 5.5 per cent of GDP, pushing up the inflation rate of the poor.

MHMarkets forecasts that consumer price inflation in Uzbekistan will reach 11.5 per cent this year, up from 8.8 per cent at the end of last year and is expected to fall to about 5.4 per cent in 2024.

[risk Tip] according to the relevant regulations on foreign exchange management, the buying and selling of foreign exchange shall be carried out at the trading venues prescribed by banks and other countries. Those who buy and sell foreign exchange privately, buy and sell foreign exchange in disguise, buy and sell foreign exchange or illegally introduce a large amount of foreign exchange shall be subject to administrative punishment by the foreign exchange control agency in accordance with the law.Zarcasinofreespins2022todayIf the case constitutes a crime, criminal responsibility shall be investigated in accordance with the law.