In Q1 of 2026, the overall liquidity level in the banking system increased and remained in a structural surplus position. The rise in liquidity was mainly driven by a significant increase in budget operations and seasonal decline in demand for cash in circulation.
During Q1 2026, the total volume of transactions in the interbank money market amounted to UZS 163 trillion, equivalent to 36.4 percent of quarterly GDP. Overnight transactions accounted for 89 percent of total money market operations, while REPO transactions represented 74 percent.
According to the Herfindahl–Hirschman Index, which measures the concentration level of the money market, a high level of concentration remained in the liquidity borrowing segment. This reflects the significant role of several large market participants in liquidity redistribution under conditions of elevated liquidity surplus.
Starting from January 1, 2026, the coverage ratio of liabilities included in the reserve requirement base was increased from 15 percent to 20 percent. To mitigate the impact of these changes on banks, the required reserve ratio on foreign currency liabilities was reduced from 9.5 percent to 8.5 percent.
In order to effectively regulate excess liquidity and ensure that money market interest rates remain within the interest rate corridor and close to the policy rate, the Central Bank placed an average weekly volume of UZS 49.2 trillion in 7-day Central Bank bonds among commercial banks during the quarter. As a result, the average UZONIA rate stood at around 13.7 percent throughout the quarter.
According to the Central Bank’s projections, the seasonal increase in budget operations in Q2 of 2026 may remain one of the key factors supporting liquidity growth. At the same time, rising demand for foreign currency and cash in circulation is expected to partially reduce the liquidity surplus in the banking system. The Central Bank will continue to actively use monetary policy instruments to ensure that money market interest rates remain within the interest rate corridor and close to the policy rate.
