Publication Details
Issue: Vol 8, No 5 (2025)
Pages: 2273-2278
ISSN: 2576-5973

Abstract

Currency policy plays a pivotal role in ensuring macroeconomic stability, especially in economies undergoing structural transformation and digitalization. In Uzbekistan, significant reforms from 2021 to 2024 have focused on liberalizing the exchange rate, adopting inflation targeting, and fostering digital finance, particularly within fintech sectors. While previous studies addressed monetary policy or digital finance independently, limited research has explored their intersection in shaping economic development outcomes in transitional economies. This study investigates how coordinated currency policy contributes to macroeconomic stability and supports economic transformation in Uzbekistan during the digitalization era. The findings reveal a consistent decline in inflation (from 10.1% to 8.1%), an increase in foreign reserves (from $32.1 to $37.8 billion), and rising fintech-related FDI (from $210 to $390 million), alongside a managed depreciation of the USD/UZS exchange rate. The research integrates macroeconomic data with digital finance trends to provide a holistic assessment of monetary governance in a digitally transforming economy an approach scarcely applied in the current literature. These outcomes suggest that the convergence of monetary and digital strategies can yield sustainable economic gains. Policymakers are advised to continue refining digital finance regulations and infrastructure to support future currency reforms. Further comparative studies are needed to assess long-term effects and generalize findings across similar developing economies.

Keywords
currency policy economic transformation Uzbekistan digital economy inflation targeting exchange rate liberalization foreign reserves fintech investment monetary stability central bank digital currency (CBDC)