Current State and Challenges of Foreign Exchange Market Liberalization and Private Currency Exchange Legalization

Abstract

The article analyzes the current state, barriers, and prospects of foreign exchange market liberalization in Uzbekistan. It examines the constraints of the existing banking monopoly on exchange operations, which fosters the shadow economy and creates economic risks. A comparative analysis of international practices (Poland, Georgia, Kazakhstan, Spain, etc.) is provided. The paper proposes an optimal hybrid reform scenario that introduces licensed non-banking exchange offices and digital P2P platforms under the supervision of the Central Bank. It evaluates potential economic benefits and associated risks, outlining specific legislative and organizational measures to transition the currency turnover from the informal sector into the legal economy