Tashkent, Uzbekistan (UzDaily.com) — The Uzbek soum continues its gradual decline against the US dollar. As of 10 October, the US dollar is trading at 12,794 soums. Since 19 September, over the span of three weeks, the soum has depreciated by 0.4%.

Although the soum stabilized during this period, the stability proved to be short-lived.

The primary factor affecting the soum at present is the rapid depreciation of the Russian ruble. The strong correlation between the two currencies is now working against Uzbekistan's currency. The ruble has been weakening over the past two weeks, despite a 25-fold increase in foreign currency sales during the reporting period and a recovery in oil prices. In addition, Uzbekistan’s long-standing issue with its trade balance is exerting further pressure on the soum.

External factors are significantly impacting the soum, and given the current situation, there is a high likelihood that the downward trend will continue.

The upcoming week of October is expected to see the USD/UZS exchange rate fluctuating between 12,750 and 12,850 soums.

Anna Bodrova,

Analyst at Alpari