In the third quarter of 2025, although the level of liquidity in the country’s banking system declined under the influence of a number of factors, while overall liquidity remained in a structural surplus position. The reduction in liquidity was mainly driven by seasonal factors, in particular the increase in public demand for cash and the expansion of the reserve requirement base.
Government operations continued to have a liquidity-increasing effect, and the overall volume of liquidity remained above the level recorded at the beginning of the year. The volume of issuances in the government securities market expanded, contributing to higher liquidity and activity in the market.
Starting from 1 August of the current year, in order to more effectively absorb excess liquidity in the system, the Central Bank’s main liquidity-absorbing operations were shifted from 1-week deposit auctions to 1-week Central Bank bills. This, in turn, increased demand for monetary policy operations and made it possible for money market interest rates to be formed within the interest rate corridor and close to the policy rate. As a result, the UZONIA rate, which at the beginning of the quarter was near the lower bound of the interest rate corridor, had moved closer to the policy rate by the end of the quarter.
Activity in the interbank money market increased: the total volume of operations amounted to 255.6 trillion soums, which is 19 percent higher than in the second quarter. More than 89 percent of operations were accounted for by overnight transactions.
Concentration indicators also showed positive developments: competition in the liquidity-providing segment intensified, and the Herfindahl–Hirschman Index declined significantly. This indicates that the distribution of liquidity among market participants is becoming more balanced.
According to the Central Bank’s projections, in the fourth quarter, budget operations are expected to continue to have a liquidity-increasing effect, while the seasonal strengthening of demand for cash will remain a liquidity-reducing factor. The Central Bank will continue to actively use its monetary policy instruments to effectively regulate the existing excess liquidity and to ensure that interest rates are formed at levels close to the policy rate.
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