Uzbekistan's Gold Strategy: Balancing Economic Reform and Global Market Trends

Uzbekistan produced 110.8 tonnes of gold last year, making it the tenth largest producer globally. The country’s central bank sold around 25 tonnes of gold. President Shavkat Mirziyoyev aims to increase gold production by 50% by 2030 amidst untapped subsoil resources and economic reforms.

Uzbekistan, a significant player in the global gold market, produced 110.8 tonnes of gold last year, securing its place as the world's tenth-largest producer. The Central Bank of Uzbekistan emerged as the second-largest net seller of gold, offloading approximately 25 tonnes, just behind Kazakhstan, as per data from the World Gold Council.

President Shavkat Mirziyoyev, who is committed to economic reforms and liberalisation after years of the country's isolation, deems this production level insufficient. He has set an ambitious target to boost gold production by 50% by 2030. Notably, only 20% of Uzbekistan's subsoil has been explored, indicating vast potential for future growth.

In June 2024, global central banks augmented their gold reserves by 12 tonnes. This added to the total gold purchases of 31 tonnes while 18 tonnes were sold. Despite these global trends, Uzbekistan has sold a net total of 7 tonnes of gold this year, ranking third worldwide after Thailand and the Philippines. The Central Bank of Uzbekistan and India's Reserve Bank jointly led in gold reserve increases, each adding 9 tonnes.

(With inputs from agencies.)