In Q4 of 2025, the overall liquidity level of the banking system increased and remained in a structural surplus position.
The total volume of interbank money market transactions amounted to UZS 183.6 trillion or around 34 percent to quarterly GDP. Out of this, around 86 percent of money market transactions were overnight deals, while 70 percent were accounted for by REPO operations.
According to the Herfindahl–Hirschman Index, which reflects the degree of concentration in the money market, an increase was observed in both the liquidity absorption and provision segments. This indicates that, amid high structural liquidity surplus conditions, liquidity redistribution was carried out by a limited group of market participants.
Starting from October 1 of the 2025, the required reserve ratio on foreign currency liabilities was reduced from 10.5 percent to 9.5 percent in order to mitigate the impact on banks of the expanded coverage of liabilities included in the reserve requirement base.
According to Central Bank projections, a seasonal decline in budget operations in Q1 of 2026, together with a rapid increase in demand for foreign currency within the banking system, may serve as an additional factor moderating liquidity conditions. At the same time, a reduction in cash demand is expected to support liquidity conditions. The Central Bank will continue to actively use its monetary policy instruments to effectively regulate excess liquidity and ensure that money market interest rates are formed within the interest rate corridor and close to the policy rate.
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