What is Uzbekistan Som (UZS)?
Uzbekistan Som (UZS)
The Uzbekistan Som (UZS) is the currency unit used in Uzbekistan, which is a landlocked country in Central Asia. Since its introduction in 1994, the Som has undergone several redenominations due to high inflation rates and economic reforms. Initially, the exchange rate was set at 1 Som for 1,000 old Uzbek Rubles, reflecting the need for a more stable and manageable currency following the dissolution of the Soviet Union.
The currency is subdivided into 100 tiyin, although tiyin coins are rarely used in everyday transactions. Banknotes are issued in various denominations, ranging from 1,000 to 100,000 Som, with higher denominations becoming increasingly common due to inflation. The design of the banknotes features significant historical and cultural figures, as well as landmarks that symbolize Uzbekistan's rich heritage.
The Central Bank of Uzbekistan is responsible for the issuance and regulation of the Som, ensuring its stability and managing monetary policy. In recent years, the government has implemented reforms aimed at transitioning to a more market-based economy, which includes efforts to stabilize the Som against foreign currencies. This has involved measures such as the gradual removal of currency controls and the introduction of a floating exchange rate system.
Despite these efforts, the Uzbekistan Som has faced challenges related to inflation and currency depreciation, impacting purchasing power for the general populace. As a result, the government has been working to enhance economic conditions, attract foreign investment, and promote trade to strengthen the currency further.
In daily transactions, the Som is widely accepted across the country, and it is advisable for visitors and residents to carry cash, as credit card usage is still limited in many places. Understanding the currency's value and exchange rates is crucial for anyone engaging in business or travel within Uzbekistan.