KEY ISSUES OF REGULATING THE MONEY SUPPLY IN UZBEKISTAN

Abstract

In connection with the transition to the inflation targeting regime in the Republic, there have been changes in the strategic goals and operational mechanism of the monetary policy. In particular, controlling the rate of growth of the money supply at the same time as the target rate of inflation has become a tactical goal of monetary policy.

In addition, ensuring the stability of the national currency is no longer considered a strategic goal of monetary policy.

In the article, the state budget deficit written in national currency should not be allowed to be imported; thirdly, the feasibility of neutralizing the impact of the deficit on inflation by covering it from the sale of commercial securities, improving the regulation of lending practices of banks from partner countries, and ensuring a low and stable level of the growth rate of the money supply is substantiated; it was based on the need to abandon the monetary aggregate M2 as an object of control and to make the monetary aggregate M1 an object of control, and it was recommended to increase the possibility of influencing the demand for foreign currencies by changing the mandatory reserve requirement of the Central Bank