Currency Regulation Regime of Uzbekistan and Impact on Behavior of Economic Agents

Abstract

Currency regulation regime has become one of the integral parts of economy since international trade developed. Everyday mass media informs us about volume of trade on stock exchange, currency market, commodity exchange and many of experts-analytics calculate volume of goods turnover that is based on export and import operations. Absence of certain goods in domestic market leads to importation materials. Correspondingly, import of goods is based on currency relations in hard currency. Hence, import is dependent on hard currency, which in turn is dependent on conversion operations. Existing challenges of currency operations in Uzbekistan has led me to write my MA thesis on this topic, with a perspective to make a contribution in development of my Motherland’s economy. The main aim of my MA thesis is to analyze the evolution of the currency regulation regime and show its impact on the economic agents. The evolution is divided into several stages with reference to legislation and regulations. Every change in Uzbekistan legislation had an effect on international trade both in micro- and macro-economic level. In my MA thesis I intend to discuss the microeconomic impact of those changes. The thesis includes role of currency operations in development of Uzbekistan economy. The thesis explains how crime structures and corruption system affect the formation of different exchange rates and its negative effect on economic agents (microeconomic level). In my MA thesis I explain measures undertaken by the Government of Uzbekistan against financial crime and corruption. The currency regulation regime is based on domestic manufacturer protectionism policy. The state has been supporting domestic producers by adopting legislative acts and regulations. Unfortunately, emerging black market has negatively affected the monetary policy on macroeconomic level. Studies and research of experts on the subject of my thesis in Uzbekistan’s case is very important to make a rational assumption and reveal an omission of experts. I hope my MA thesis will help the reader express right opinion about Uzbekistan currency regulation regime.