Over the past decade, Uzbekistan has undertaken significant reforms, steadily evolving towards a market-oriented economy and achieving impressive GDP growth. Currency liberalization, increased private sector participation and growing international trade ties have combined to leave the metal-rich nation well positioned to benefit from rising commodity prices. However, its high level of mineral and metal exports creates vulnerability to price volatility, underscoring the need for a robust derivatives market.
In 2016, Uzbekistan set out on an ambitious reform agenda as newly elected President Shavkat Mirziyoyev looked to pivot the Central Asian nation from a state-led, isolated economy to a more open, market-based one. According to research published by the International Monetary Fund (IMF), a significant early change was currency liberalization, under which the country’s official and black-market exchange rates were unified, the Uzbekistani som was floated and previously strict conversion limits were abolished. The changes ushered in the end of export surrender requirements and opened up access to foreign exchange for businesses and individuals. However, the reforms came at the expense of a 50% currency devaluation and a period of double-digit inflation, IMF research notes. In 2020, in a bid to combat the latter, the Central Bank of Uzbekistan was given an inflation-targeting mandate with a medium-term inflation target of 5%.
Alongside currency liberalization, a raft of measures have been introduced to integrate Uzbekistan into global markets, including the removal of import and export restrictions on most goods, the simplification of export processes and the expansion of tax benefits for exports. The country has also increased economic cooperation with international financial institutions, such as the IMF, World Bank and Asian Development Bank, and it is working to meet accession requirements to join the World Trade Organization this year.
A third key area of reform centers on reducing the state’s role in the economy and encouraging private sector involvement and foreign direct investment. This effort includes the privatization of state-owned enterprises (SOEs), as well as reforms to improve investor protection and the ease of doing business. In May 2026, there was an IPO of the National Investment Fund (UzNIF), which holds minority stakes in 13 major SOEs, on the London Stock Exchange and Tashkent Stock Exchange, marking the country’s first international equity offering.
The restructuring seems to be paying off, with S&P Global reporting economic growth averaging 6% a year since the reforms began in 2017, and hitting 7.7% in 2025, with growth of 8.1% now projected for 2026. As of July 2026, inflation stands at 6.4%, and the Uzbekistani som has appreciated on the back of high gold prices. Even so, challenges remain in reforming and privatizing large state-owned enterprises and banks – an estimated 1,800 SOEs still remain – and fostering a competitive market environment with easy market entry and exit, IMF research notes.
Uzbekistan’s growing trade ties with the rest of the world and improved business environment leave the metals- and mineral-rich nation well positioned to benefit from rising commodity prices. The country is a top 10 producer of gold and ranks 20th in the world for copper. It is also the world’s fifth largest uranium producer. In addition, Uzbekistan boasts significant reserves of silver, lithium, tungsten and rare earth elements, as well as magnesium, zinc, aluminum and graphite. To put the value of some of these reserves in context, gold prices soared by 65% in 2025, silver by 144% and copper by around a third.
Rising prices for these natural resources saw Uzbekistan’s exports by value rise by 23% to US$33.4 billion in 2025, driven by strong metal and mineral exports, as well as food, fertilizer and services. Gold exports alone rose by 32% year-on-year to reach US$9.9 billion, accounting for 29.3% of the country’s total exports, helping to reduce its current account deficit and offset slower growth in other sectors. Under the Uzbekistan-2030 Strategy, the government has set out plans to capitalize on the country’s natural resources, increasing its annual production of copper to 500,000 tons, gold to 175 tons, silver to 500 tons and uranium to 15,000 tons.
Uzbekistan’s high level of commodity exports makes it vulnerable to price fluctuations. As such, it is taking steps to improve its financial infrastructure to support the use of derivatives for hedging to enable businesses to manage currency and price risks. A new Capital Market Law, which was presented to President Mirziyoyev in June and now requires adoption by the Uzbek Parliament, would introduce financial instruments, such as options, futures, swaps and forwards, for the first time. The framework for the instruments would meet standards set by the International Swaps and Derivatives Association (ISDA), as well as introduce a transaction system based on netting agreements.
The National Agency for Perspective Projects of the Republic of Uzbekistan has also introduced a regulatory sandbox allowing companies to issue foreign currency bonds to help mitigate currency risk. Meanwhile, in March 2026, the Central Bank of the Republic of Uzbekistan signed a Memorandum of Understanding with The Currency Exchange Fund, an international financial institution specializing in currency and interest rate hedging in developing and frontier markets. The memorandum aims to develop Uzbekistan’s derivatives market, with a focus on creating a modern ecosystem for risk management based on international best practices.
Finally, the Uzbek Commodity Exchange (UZEX), Uzbekistan’s leading organized commodity marketplace, is building on its established domestic trading infrastructure to expand access to international commodity markets and modern risk-management tools. This evolution is being accelerated through UZEX Global, a joint venture between UZEX and Phillip Capital, which will facilitate access to global commodity derivatives traded on leading exchanges, including CME Group. Alongside providing the operational infrastructure necessary for direct derivatives trading, the exchange will also offer consulting and education services on risk management.
Taken together, these initiatives should lay the foundations for a derivatives market aligned with international standards, enabling businesses to manage commodity and currency risks as the country's export economy continues to grow.
Source: CME Group, OpenMarkets, September 15, 2026.
leave a comment