Gold - The Times Of Central Asia

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Uzbekistan’s Gold and Currency Reserves Reach Record Levels

As of September 1, Uzbekistan's international reserves reached $39.15 billion. This reserve value is a record indicator for after 2018 when data disclosure began. In August, the value of international assets increased by $1.75 billion, or about 4.7%, compared to July's increase of $1.06 billion. This increase was mainly due to gold. Although the net physical volume of gold in official reserves decreased from 12.1 ounces to 12 ounces during August, the metal's price on the world market has increased significantly. Due to this, the value of the gold part of reserves increased by $1.24 billion or 4.4% to $30.39 billion in one month. Since the beginning of 2024, the price of gold has risen by 20% on the world market. Last month, the price of standard gold bullion exceeded a million dollars for the first time in history. Uzbekistan was one of the countries that bought the most gold in July. In August, reserve assets in foreign currencies increased from $7.68 billion to $8.19 billion (+ $503.1 million). Uzbekistan’s gold-currency reserves have increased by $4.59 billion or 13.3% since the beginning of the year. The Times of Central Asia previously reported that Uzbekistan’s gold reserves reached $37.4 billion in August.

Trade Industry Gold mining in central asia Gold National Bank Kyrgyzaltyn

Store Selling Gold Bars to Open in Kyrgyzstan

Kyrgyzstan’s state-owned gold-producing company, Kyrgyzaltyn OJSC, will open a store in Bishkek on September 5 to sell gold bars. On August 30, Kyrgyzaltyn opened a workshop for the production of gold bars in Kara-Balta, a town 100km west of Bishkek. It is Kyrgyzstan's first enterprise to produce measured gold bars, with a monthly production capacity of up to 14,000 units. The facility uses advanced technologies and modern equipment from Italy and Germany, allowing the production of souvenir coins and medals. Earlier, the mayor of Kara-Balta, Mirlan Jekshenov, told Birinchi Radio that over the next year, the enterprise plans to release up to 3,600 kilograms of gold in bars of various weights — 1, 2, 5, 10, and 20 ounces and 50-100 grams — for the domestic market. In recent years, the country's government has encouraged the population to buy gold from the National Bank, saying that it is the best way for citizens to keep their savings. According to official statistics, gold accounts for almost 39% of Kyrgyzstan’s exports; in 2023, Kyrgyzstan sold more than 20 tons of gold. Most of Kyrgyzstan’s gold is produced at the country’s largest gold mine, Kumtor. Last year the mine produced 13,567 tons of gold, with a total revenue of $848 million and a net profit of $302.5 million.

Gold

Production of Granulated Gold and Silver Launched in Uzbekistan

On July 16, Uzbekistan’s Almalyk Mining and Metallurgical Complex announced it would start producing gold and silver granules. The Almalyk plant will also begin production of granulated copper and plans to produce granules from other non-ferrous metals. The equipment for producing granulated gold, silver, and copper was purchased in Italy. According to the Almalyk Complex’s press service, the new products will prove convenient for jewelers. In jewelry production, losses occur during the re-melting of ingots and other means of mechanically processing metals. Gold and silver granules will reduce the cost of jewelry products and improve their quality. At a government meeting about Uzbekistan’s jewelry industry last month, President Shavkat Mirziyoyev said that just 6% of the gold mined in Uzbekistan is processed within the country, and exports of finished products from gold amount to only $78 million. The president emphasized the importance of creating jewelry zones equipped to attract entrepreneurs and reviewing raw materials that are supplied to the industry. In January-March 2024, Uzbekistan exported gold worth $2.6 billion, with revenue from gold exports comprising 41.7% of the country’s total export revenue.

Banking Export/import Economy Gold Finance Investments

Drop in Uzbekistan’s Gold Sales

In April, Uzbekistan's sales of gold dropped significantly, according to data published by the World Gold Council (WGC). In the same month, the total gold reserves held by the world’s central banks increased by 33 tons and volumes of purchases and sales amounted 36 tons and 3 tons respectively. The most active buyers of precious metals during the reporting period were the Central Banks of Turkey (8 tons), Kazakhstan (6 tons), and India (6 tons). Meanwhile, the Central Bank of China greatly reduced its gold purchases , while increasing its reserves by 2 tons to 2,264 tons; the lowest figure since November 2022. A significant decrease in precious metal sales occurred at the expense of Uzbekistan and Jordan, whose reserves decreased by only 1 ton. In May, the world central banks' reserves increased by 10 tons, the volume of purchases was 23 tons, and that of sales, totalled 12 tons. During that month, Kazakhstan took the lead in sales of 10 tons of gold. A previous report, posted by the TCA, provided data for Uzbekistan’s gold exports in February and March.

Economy Gold Foreign Trade

U.S. Ranks Among Top Ten in Uzbekistan’s Foreign Trade Turnover

The Statistics Agency of Uzbekistan has presented information on the country’s foreign trade turnover for January - May 2024. The republic’s foreign trade turnover (FTT) reached $26.7 billion during the reporting period. The volume of exports was $10.8 billion, and the volume of imports was $15.8 billion. Compared to the same period last year, the volume of exports increased by 1.9%, and the volume of imports increased by 3.7%. Uzbekistan's negative foreign trade balance has reached $5 billion. China has retained its position as Uzbekistan's largest trading partner. During the reporting period, the volume of mutual trade reached $5 billion, which is 18.9 % of the republic's total foreign trade turnover. A significant segment of foreign trade turnover was also registered with Russia (17.9%), Kazakhstan (5.9%), Turkey (4.5%), and South Korea (3.4%). Top 10 countries with the highest share in foreign trade turnover of Uzbekistan in January-May 2024 were: China – $5.05 billion; Russia – $4.78 billion; Kazakhstan – $1.58 billion; Turkey – $1.19 billion; Korea – $920 million; France – $471 million; Turkmenistan – $455 million; Germany – $426 million; the USA – $386 million; and Afghanistan – $382 million. For the five months in question, exports without gold increased by 5.9%, almost $6.58 billion. During this period, the share of gold exports decreased from 40.3% to 38.6 %, or $4.2 billion. Furthermore, the share of industrial products in total exports rose from 15.8% to 15.9%, chemicals from 4.3% to 5.6%, mineral fuels from 3% to 3.2%, and machinery and transport equipment from 4.5% to 4.6%, whilst the share of food products and live animals decreased from 6.3% to 5.8%. Machinery and transport equipment (37.3 %), industrial goods (15.2 %), and chemicals and similar products (12.3 %) accounted for the largest share of imports.

Gold Industry Export business and economy Jewellery

Uzbekistan Seeks to Boost its Jewellery Industry

At a government meeting on June 19, plans to further develop Uzbekistan’s jewellery industry, support production and increase exports were presented to President Shavkat Mirziyoyev. Noting the country’s huge potential for increasing the production and export of jewellery, the president said that just 6 percent of the gold mined in Uzbekistan is processed, and exports of finished products from gold amount to only $78 million. He thus emphasized the importance of creating jewellery zones equipped to attract entrepreneurs, a review of supplies of raw materials to the industry, and training specialists in the field. With reference to the above, the head of state issued instructions for a program to be developed to enhance the domestic jewellery industry until 2027. The meeting also discussed piloting special jewellery centres with production, exhibition and trading areas in Tashkent and the Namangan region. The government is considering establishing, until October 1, 2026, a zero rate of customs duty and value added tax on equipment, packaging and labelling materials used, but not produced, in Uzbekistan in the jewellery industry. An additional proposal was mooted to establish a zero-customs duty rate for the export of Uzbek jewellery to the USA. In January-March 2024, Uzbekistan exported gold worth $2.66 billion. In the first quarter of the year, revenues from gold exports comprised 41.7% of the country’s total exports. In 2023, gold exports accounted for 33.4%, or $8.1 billion, of Uzbekistan’s total export volume.