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September 8, 2017 www.intellinews.com I Page 4
“Unifying exchange rates and allowing a market- based allocation of foreign exchange resources would allow the Central Bank of Uzbekistan (CBU) to pivot to a stability-oriented monetary policy capable of effectively controlling inflation,” the IMF noted.
All consumer goods within the country have his- torically been priced in accordance with the black market rate and, as such, the convergence of the official and black market rates at UZS8,100 against the greenback is expected to keep Uzbek consum- ers largely unaffected by the liberalisation.
But Mirziyoyev has, nonetheless, ordered the Uzbek authorities to prepare measures to curb potential rapid inflation. According to the Uzbek president’s decree from September 2, state com- mittees and law enforcement authorities “should strengthen measures to prevent and suppress un- reasonable growth of prices and tariffs for socially significant goods and services,” state-run UzDaily. uz news agency reported on September 4.
Increased employment options back home
Last but not least, another positive side effect of abolishing the strict currency regime might be
Crisis over Ukraine gas monopoly snowballs
Kovaliv's move followed the receipt by the govern- ment of a letter on April 6 from four of the inde- pendent board members — Paul Warwick, Markus Richards, Proctor and Kovaliv — expressing deep concern over the situation in the company. With- out "material progress" it would be "inappropriate and untenable" for them to continue as supervi- sory members, they said.
On April 7, Sir Suma Chakrabarti, the president of the European Bank for Reconstruction and Devel-
a reduction of Uzbekistan’s reliance on remit- tances from Uzbek migrant workers, mostly in Russia, for foreign currency inflows. Remittances “make up 13-15% of the country's GDP and a large portion of the population’s foreign exchange earnings,” Alisher Taksanov, an exiled economist based in Switzerland told bne IntelliNews last year. The migrant workers themselves will certainly benefit from the increased employment options within their home country.
“The reform would also promote job creation and growth by increasing external competitiveness, attracting foreign direct investment (FDI), and im- proving the allocation of domestic resources,” the IMF mentioned in its statement.
One thing is clear. Foreign companies will be either returning to Uzbekistan or entering it for the first time. Some entities were already back in the fold prior to the reforms, including the Euro- pean Investment Bank and the European Bank for Reconstruction and Development. It is now up to Mirziyoyev to see the transformation through, but if he does the whole economic structure of Central Asia could be radically transformed and Tashkent may emerge as the capital of the region.
opment (EBRD), warned the Ukrainian leadership of negative effects from the threatened resignation of the independent board members of Naftogaz.
This move might not only “severely damage” the company at a time when its transformation is fi- nally beginning to take hold, but could also “shatter the international confidence in your government’s commitment” to reform and restructuring of Nafto- gaz and other state-owned enterprises in Ukraine, said the letter published by bne IntelliNews.
"Impossible to fulfil his role effectively"
Explaining his decision, Proctor said that the level of government support required to deliver corporate governance reform "had not been