ANALYSIS OF THE RESERVE REQUIREMENT INSTRUMENTS IN UZBEKISTAN

This article analyzes the reserve requirement tool of the monetary policy. In particular, the impact of the Central Bank’s reserve requirement policy on commercial banks, as well as the impact of changes in the money supply on the effectiveness of the reserve requirement instrument was studied. According to the analysis, the quantitative easing by reserve requirement tool from 2018, and this was mainly done in relation to deposits in the national currency, had a positive impact on commercial banks. Also, the high share of cash in the structure of the money supply in the national currency leads to the fact that the reserve requirement instrument does not work effectively enough. This is because the reserve requirements apply to deposits in commercial banks, and much of this cash is circulating outside the banking system, and the reserve requirement does not extend to such a resource.

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