Tashkent, Uzbekistan (UzDaily.com) — As of 28 August 2025, the Uzbek soum has further strengthened against the U.S. dollar, with the American currency trading at 12,400 soums.

Over the past week, the soum appreciated by 0.4%. Last week also saw gains for the currency, following a period of relative stability.

From January to July 2025, the Uzbek soum significantly gained against the dollar, with the official USD exchange rate falling by 2.55%.

Several key factors are contributing to the dollar’s weakening. These include declining confidence in the U.S. currency amid Donald Trump’s policies, strong global demand for gold, growth in cross-border remittances, and increased foreign currency supply from export revenues amid limited domestic demand.

In the spring, the International Monetary Fund recommended that the Central Bank increase exchange rate flexibility, allowing the currency to fluctuate within a wider range. This measure is expected to help cushion external shocks and enhance the effectiveness of monetary policy. Authorities responded positively to the recommendation. Earlier reports noted that Uzbekistan’s gold reserves had risen to $38.68 billion, reaching a historic high.

The USD/UZS pair is expected to begin September trading within the 12,380–12,700 soum range.

Anna Bodrova, Alpari Analyst