Central Bank of the Republic of Uzbekistan
Legal status, tasks, functions, powers, principles of organization and activity of the Central Bank of the Republic of Uzbekistan are determined by the Constitution of the Republic of Uzbekistan, the Law of the Republic of Uzbekistan "About the Central Bank of the Republic of Uzbekistan" and other legislative acts.
It is enacted by Article 124 of the Constitution that the banking system of the Republic of Uzbekistan is headed by the Central Bank of the Republic.
In accordance with Article 1 of the Law of the Republic of Uzbekistan "About the Central Bank of the Republic of Uzbekistan" the Central bank is a legal entity and is the exclusive property of the state.
Central Bank is economically independent institution exercising its costs from its own revenues.
These provisions reflect the norms of international practice, under which the Central Bank is established as a legal entity belonging to the state, but the financial activities is carried out by the Central Bank itself. The Central bank is a public body, which in the framework of its competence develops guidelines for the single state monetary policy, has the exclusive right to issue banknotes in circulation in the form of notes and coins as legal tender, is the body of currency regulation and control, acts as a banker, advisor and fiscal agent of the government of the Republic of Uzbekistan, performs the functions of supervision and regulation of banks and other lending institutions. The properties of the Central Bank are its cash and other tangible assets, the cost of which is reflected in the balance sheet of the Central Bank.
The main purpose and objectives of the Central Bank of the Republic of Uzbekistan
Under the Law of the Republic of Uzbekistan "About the Central Bank of the Republic of Uzbekistan," the main purpose of the Central Bank is to ensure the stability of the national currency.
The main objectives are:
formation, adoption and implementation of monetary policy and policy on currency regulation;
organization and provision of effective payment system in the Republic of Uzbekistan;
the licensing and regulation of banking activities, the activities of credit unions, micro-credit organizations and pawn shops, the supervision of banks, credit unions, micro-credit organizations and pawnshops, licensing of production of forms of securities;
storage and management of official foreign exchange reserves of the Republic of Uzbekistan, including the provisions of the Government under the agreement;
organize jointly with the Ministry of Finance the cash execution of the state budget.
To ensure the stability of the national currency the Central Bank of the Republic of Uzbekistan solves its basic tasks, the essence of which are as follow:
implementing concerted monetary and currency policy, the Central bank exercises supervision over the total money supply in circulation, the stability of the exchange rate of the national currency against foreign currencies, promotes to maintain public confidence in the banking system.
varying the amount of the money supply through its credit and exchange business, the Central bank affects the dynamics of prices of goods and services, the total volume of production, exports and imports, impacts on employment levels.
The Central bank is the body of currency regulation and currency control.
The Central Bank:
issues normative documents on foreign exchange regulation, mandatory for all persons on the territory of the Republic of Uzbekistan;
issues and revokes licenses for foreign currency transactions to banks, other businesses and individuals, supervises and regulates their activities;
sets limits on open currency position and other economic measurement data for banks;
establishes a procedure for determining the rate of the national currency against foreign currencies;
owns and monitors the international reserves of the Republic of Uzbekistan.
The task of organizing and providing settlement system determines the main role of the Central Bank to ensure efficient payment system in the country. Payments on the territory of the Republic of Uzbekistan are carried out in the form of cash and non-cash payments.
The Central Bank of the Republic of Uzbekistan enacts obligatory normative documents setting the rules of accounts. Uniform application of these rules provides the continuity and timeliness of accounts throughout the country.
To ensure an effective system of settlements the Central Bank carries out constantly work to introduce new tools calculations based on modern technology, develops the system of accounting and reporting in accordance with international standards for the provision of financial and economic information of consumers - shareholders, investors, depositors, auditors, creditors and foreign companies, organizations and banks.
One of the main objectives of the Central Bank of the Republic of Uzbekistan is the banking regulation and supervision of banks and other lending institutions. This is necessary to maintain the stability of the banking system and protection of the interests of shareholders, depositors and creditors.
Among the most important means to achieve this objective there is the licensing of banks and other lending institutions. The purpose of licensing is the access to the market the banking and credit services of financially sound organizations run by persons of impeccable reputation, able to ensure public confidence in the banking and financial system.
Central Bank contributes to the maintenance of international reserves at a level sufficient for the implementation of monetary and currency policy of the Republic of Uzbekistan, as well as settling with international transactions.See more