The Influence of the Main Rate of the Central Bank on GDP Growth in Uzbekistan and the Transition to International Financial Reporting

Abstract

The research explores the intricate relationship between the central bank's main rate and the gross domestic product (GDP) growth in Uzbekistan while also considering the challenges and benefits associated with transitioning to International Financial Reporting Standards (IFRS). As an emerging economy, Uzbekistan has recently implemented significant economic reforms. This study investigates the role of the central bank's interest rate policy in shaping the country's economic growth and the impact of adopting IFRS on its financial transparency and investment climate. The Law of the Republic of Uzbekistan “On the Central Bank of the Republic of Uzbekistan” defines the task of developing and implementing monetary and credit policy of the Central Bank of the Republic of Uzbekistan, including currency policy. This research analyzes the effect of the refinancing rate of the Central Bank on the GDP of Uzbekistan. The authors applied the correlation methods of Tau-b Kendall and Spearman. During the research, the authors observed quarterly indicators from 2016 to 2022; the number of observations was 26. On this basis, the authors conclude that the Central Bank's policy of setting the main rate for the last seven years did not serve the GDP growth. The authors proposed establishing a scientific council to determine the Central Bank's refinancing rate and improve scientifically based monetary policy.

Citation

Khamdamov, S.-J.R., Usmanov, A.S., Sayfullayev, S.N., Xamitova, M.S. and Adkhamjonov, S.B. (2024), "The Influence of the Main Rate of the Central Bank on GDP Growth in Uzbekistan and the Transition to International Financial Reporting", Eshov, M.P., Abdurakhmanova, G.K., Burkhanov, A.U., Abdusalomova, N.B. and Ergasheva, S.T. (Ed.) Development of International Entrepreneurship Based on Corporate Accounting and Reporting According to IFRS (Advanced Series in Management, Vol. 33A), Emerald Publishing Limited, Leeds, pp. 107-112. https://doi.org/10.1108/S1877-63612024000033A013