An Uzbekistan Spring
Late President Islam Karimov, who passed away last year, left Uzbekistan in a precarious economic state, including heavy governmental interference in the economy, human rights abuses, and a weak currency inexplicably pegged to the US dollar. However, new President Mirziyoyev has initiated a number of reforms, the latest one being floating the Uzbek som as of September 5, 2017. The enactment of the presidential order saw the som finally becoming subject to market forces, consequently seeing its value plummet by 50% , down to 8,100 soms per dollar – below the 7,700/dollar black market rate – which made it the most devalued currency globally in 2017. The new exchange rules introduced free currency exchange by individuals and limitless purchase by legal entities for trade and non-trade payments, and abolished the rule that required all foreign currency profits to be sold.
Photo: Reuters
