Urgent Issues in Maintaining the Stability of the National Currency System

Abstract

Development of the national monetary system necessitates the ensuring of stability of the national monetary system. This is explained by the fact that the national currency system has a direct impact on the competitiveness of the national economy, on the export potential of the country and the living standard of the population. Appreciation of the real exchange rate would cause the rising of export cost and artificially overvalued exchange rate will provoke the emergence of excessive demand for foreign currencies in the country. Moreover, relatively high devaluation level of national currency would negatively affect the efficiency of financed investment projects. This article analyzes the current state of monetary system of the Republic of Uzbekistan, identifies the current problems and proposes scientific and practical solutions to identified problems. In particular, the author justifies the need for the transfer of all foreign exchange reserves of the state to the balance sheet of the Central Bank with the right to self& governance within the fr amework of monetary policy. Increasing the diversification level of foreign exchange reserves of the Central Bank is proposed by restructuring the currency framework of external debt of the Government of Uzbekistan.