Depriciated Russian ruble is dragging down the Uzbek som

Центральной Азии прогнозируют сокращение роста из-за кризиса в России Russian expert said Arslan Magomedov: Uzbek national currency som vs USD and other currencies will be falling in relation to the economic situation in Russia. He noted that due to the devaluation of the Russian ruble Uzbek migrant workers are no longer able to buy and send home currency, mainly the US dollar, in the same volume.

In this regard, he said, last month Uzbek sum exchange rate has fallen by about 15%, and its continuing decline because of the shortage of US dollars cash in circulation on market of Uzbekistan.
“We’re talking primarily about the so-called “street course”, as in Uzbekistan there is no free conversion, and all currency exchanges are carried by general public illegally on the black market.
According to the expert, the authorities are not able to make significant adjustments to the stabilization of the local currency, because “a systemic problem and the scale is directly related to Russia.”

“As prices in Uzbekistan strongly tied to the dollar, there will be a significant inflation,” – said Magomedov.

In addition, the expert said, the Uzbek authorities may be faced with another, more serious problem. “Migrant Uzbek workers in Russia ( about 6 million according to unofficial data) are now returning home en masse. This can cause serious mass discontent.

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About Ahmed Islamov

I was born and raised in Uzbekistan and lived in that country for about two thirds of my life. I left the country about 14 years ago but sustained tight bonds with my family and friends living there. I know and communicate personally with hundreds of people including blue-, white- or pink-collar workers. I am naturally very attached to and concerned with everything that is going on there.
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