Inability to use foreign currency to fix price in the contract and underdeveloped hedge market limiting the company to attract experts from different countries.
in UzbekistanTrade barrier summary
The inability to use foreign currency to agree a contract price, together with an underdeveloped hedge market, poses challenges to overseas exporters to Uzbekistan. When an overseas business establishes a local office in Uzbekistan, contracts need to be agreed in local currency which creates challenges having to convert currency to pay workers. It is possible to convert local into foreign currency at local commercial banks, however for larger-scale projects, and projects with longer timeframes, the UK business risks foreign exchange rate fluctuations.
This is underpinned by Presidential Decree No.УП-5177 dd. 02.09.2017 on “Primary measures on liberalization of currency policy.” This stipulates that Uzbekistan prices and tariffs on goods, works and services need to be fixed in a national currency.
This limits UK businesses from applying for longer term projects, from establishing a local office in Uzbekistan.
Sectors affected
- Advanced engineering
Resolved
No
Date reported
23 April 2020
Last updated
1 June 2022
Public ID
PID-E9MX7G
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