Page 19 - 2022 - annual report

IMPLEMENTATION OF THE DEVELOPMENT

STRATEGY IN 2022

Pursuant to the Decree of the President of the Republic of Uzbekistan dated November
18, 2019 No. UP-5877 “On improving monetary policy with a phased transition to an inflation
targeting regime”, as well as within the framework of the implementation of the Development
Strategy of the UZCE a number of relevant measures have been implemented.

Forex market

In order to further develop the exchange currency market, create additional amenities
for bidders, attract liquidity from the OTC market to the exchange, during 2022, the UZCE
has done significant work, including:

ARRO optimized and halved the amount of commission paid by participants of currency
spot operations;

ARRO participants of the currency swap market are exempt from paying commission fees
until May 1, 2023;

ARRO in order to effectively manage risks in the UZCE foreign exchange market, the activities
of the central counterparty have been introduced. Carrying out the activities of the central
counterparty, UZCE undertakes obligations to ensure the execution of transactions
concluded on the foreign exchange market;

ARRO a Guarantee fund has been created to ensure the fulfillment of obligations under
concluded transactions at UZCE.

The implementation of the activities of the central counterparty made it possible to
provide guarantees for the participants of transactions in the timely receipt of funds for
transactions and to introduce an effective risk management mechanism.

In addition, liquidity providers began their activities in the UZCE foreign exchange
market in close relationship with the central counterparty, assuming the obligation to
participate as a party to the transaction in case of default on foreign exchange transactions.
The activities of the institute of market makers, the central counterparty and the
liquidity provider introduced for the first time at UZCE are an important step to bring the
default management system in the foreign exchange market to a qualitatively new level
and, undoubtedly, are of strategic importance for the development of the financial market
of our republic.

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