(Trend) ‑ The Central Bank of Uzbekistan has decided to keep its refinancing rate at 12% in August.

“According to the primary directions of the monetary policy for 2011, as well as the actual and expected inflation level, the bank kept its refinancing rate unchanged,” the bank reported.

Uzbekistan has been using a floating refinancing rate since 2000, making adjustments depending on the dynamics of inflation level, market demands and offer in the money market.

In late 2010 the regulator of the Uzbek banking system decided to reduce the refinancing rate from 14% to 12% from Jan.1, 2011. The refinancing rate has been held at 14% per annum by the Central Bank of Uzbekistan since July 2006. According to the official statistics, inflation was 7.3% in Uzbekistan in 2010 compared to 7.4% a year earlier. In 2011, inflation is planned to be held within 7-9%.

The Uzbek banking system is represented by three state banks, five with foreign capital, 12 joint-stock banks and 11 private banks. In January-June, the total assets of Uzbek commercial banks increased by 29.4% and amounted to 26.839 trillion soums compared to the total figure in 2010, the total loan portfolio of banks increased by 33.6% and amounted to 15.412 trillion soums, the aggregate bank capital increased by 12.2% and amounted to 4.61 trillion soums since early year.

The official exchange rate is 1724.94 soums to US$ 1 on Aug.1.