Improvement of Money Procedure in our Country

Nortojievich AT

Published on: 2020-12-19

Abstract

The article analyzes the scientific and theoretical perspectives on how to make money proposals, and evaluates the practical importance for the economy of Uzbekistan. In 2017-2021, the strategy of actions of the Bank of Uzbekistan should strengthen the commercial bank deposit base, strengthen capitalization, strengthen the financial stability and provide private investment. However, there are certain factors that are contributing to monetary policy discouraging commercial banks' credit issuance. One of the factors is that the Central Bank of the Republic of Uzbekistan is the top supplier of mandatory reserve requirements.

Keywords

Money; Money supply; Money supply; Money aggregates; Inflation; Investment; Spin; Central bank; Commercial banks; Mandatory reserve requirements

Introduction

The experience of developed countries, especially the USA and Japan, shows that the streamlining of the money supply does not allow the inflation rate to rise, the national currency can be recovered, and the macroeconomic constraints are required. It is noteworthy that the development of modern, innovative development of the economy of Uzbekistan is one of the most important issues in the development of money supply. For example, in 2017-2021, the Republic of Uzbekistan has been tasked with combining monetary policy with the use of the most widely used instruments in the global strategy of sustainable development. Bunning master, President of the Republic of Uzbekistan, September 2, 2017 PF-5177 issue "Currency policy liberalization is the first priority" The state budget can provide more flexible monetary policy. recognized as one. However, there are some problems in the country, which offer a solution of the money supply. One of such problems is money massing, which is considered to be the best option. In 2017, the growth rate of money supply (M2 money aggregate) was 40.2% compared to 2016. In addition, the fact that Central Banking of the Republic of Uzbekistan does not have large market operations is hampering the organization of money supply arrangements. In general, the existence of problems associated with the organization of money-laundering operations in the Republic of Uzbekistan and the need for scientific solutions and practical recommendations for the solution of this issue are the subject of this doctoral thesis.

Literature Analysis

The issue of ordering money is an in-depth and in-depth study of economists' scientists and a number of scientific conclusions have been formulated. J. Tobinning 2010 concludes that demand for financial assets and the government and the Central Bank can influence the rate of return on capital assets that are acceptable for investors, thus reducing the demand for financial assets and affecting the profitability of these assets. If monetary authority wants to lower the acceptable rate of return for investors, then investment in real capital may have an impact on the market rate of return on equity [1]. According to J.Tobinning 2010, Uzbekistan has important practical significance for the economy. Bunting is the reason why the growth of prices in the country and high rates of appreciation of the national currency in the republic have not been able to provide the investment attractiveness of financial assets, employment and shares. Inflation and national currency devaluation are examples raised by the government and Central Banking authorities. Thus, in the strategy of actions of the Republic of Uzbekistan for five years of sustainable development in the years 2017-2021, the Strategy of the National Bank raised the necessary prerequisites for ensuring national currency recovery and reducing macroeconomic recovery [2]. M. According to Friedmenning 1999, the Central Bank offers significant opportunities for regulating the money supply [3], while inflation is a pure monetary phenomenon, but not a factor. Consequently, inflation can only be adjusted by adjusting the money supply to order, and this task can only be accomplished by the Central Bank [4]. Fighting inflation is a strategic goal for central banks, and they have authority in writing against inflation. However, M. Friedmanning's inflation is not a big factor, but many conclusions show that many countries are in operation, including the Republic of Uzbekistan. In particular, in the Republic of Uzbekistan, the growth of prices for natural monopolies products and services has played an important role in the growth of inflation. The central bank has also been unable to integrate natural monopolies into pricing policies. As the President of the Republic of Uzbekistan Sh.Mirziyoev acknowledged, “How much has the mineral prices increased in the last 10 years? The question naturally arises: Unfortunately, there is no answer to such questions” [5]. Uzbek economist O.Sh. Namozov 2003 acknowledged that inflation is a multifaceted phenomenon, that inflation is the target of inflation, to a certain extent, that goods and services should be more independent, prices for inflation and dependence on inflationary processes, and foresight. M. Friedman 1999 was the first economist to note that the annual growth rate of money supply is a definitive indicator, and the implementation of this index has led to the scientific effort of the Central Bank to monitor the inflation. While money supply has been suggested by the annual growth rate of 4%, assessing the growth of the money supply must be based on long-term regenerative growth [6]. This conclusion of Friedmenning 1999 has important practical implications for Uzbekistan. Bunning is the reason why M2 money aggregation is growing in Uzbekistan.

Research Methodology

In the process of research, the scientific methods of the study of economic realities - experimental research, generalization, grouping, analytical.

Analysis And Results

Although the central bank controls overspending, the money supply growth rates are still strong. In 2017, the growth rate of money supply (M2 money aggregate) was 40.2% compared to 2016 [7]. The fact that M2 money aggregation is chosen as an indicator of monetary policy in the country is explained by the fact that the number of deposits is relatively high (Table 1). As shown in Table 1, deposits of M2 money aggregates tend to have higher weight. Under these conditions, M2 is considered as an adequate indicator of monetary policy.

Table 1: Composition of aggregate M2 money in the Republic of Uzbekistan, in percent.

 

01.01.2016y.

01.01.2017y.

01.01.2018y.

Cash circulation

25,2

25,3

26,6

Deposits in national currency

60,5

57,9

38,3

Foreign currency deposits

14,3

16,8

35,1

Monetary aggregate M2 - well

100,0

100,0

100,0

According to E. Hansenning 2006, money is not likely to be a sign of inflation in the vicinity. Consequently, money is considered as the only means of dealing with inflation policy as a single instrument and a risk for arms [6]. In our opinion, E. Hansenning 2006 argues that the money supply side by side can not solve the problem of inflation against the inflation. The Republic of Uzbekistan is not properly balanced by the up-to-date monetary policy, fiscal policy and fiscal policy. In particular, the current Central Bank's policy of slowing inflation is gaining traction in the face of rising global warming and stock market rates. However, consumer goods and services are valued and, for this reason, Uarnar's high rates of high prices for goods and services are falling. However, the lack of government securities does not allow the Central Bank to absorb the excess liquidity in the banking system of the country through its open market operations. Boeing is also likely to use the opportunity to lower interest rates on loans to commercial banks and the state budget. It should be noted that Mr. Harrod's importance on the balanced policy of monetary and financial policy is important. The results of the research conducted by R. Harrod will help to update the policy of the policy of monetary policy, monetary and financial policy. Therefore, economic growth is a way to maximize employment and restore growth in a manner that is feasible R. Harrod introduced to the economic science the first steps towards natural and guaranteed economic growth. The natural growth of the economy is shaped by the dynamics of income and the dependence on rainfall. The guaranteed growth of the economy will be ensured by the state's own sprinkling, the state's sprinkling rate and direct state investment in investment. R.Harrod concludes that Uzbekistan is an important practical tool for the economy, and that our current economic development is not balanced by natural and guaranteed rates of economic growth. In fact, on the 5th of September 2017, the national currency's depreciation against the US dollar, with the liberalization of the foreign exchange policy liberalization in the country, was almost twice the rate of March. Moreover, the investment has lowered the risk of falling rates and discourages the growth of the economy in a guaranteed manner. In addition, during the period since the introduction of the national currency and currency July 1, 1994, the rate of depreciation has significantly reduced the real value of foreign investors' profits. Thus, the degree of devaluation of the national currency has had a significant impact on the education and the recovery of macroeconomic growth rates. According to R. Harrodning, the most important tool of adjusting the rules of spraying is financial policy. The more the government provides social guarantees to its citizens, the lower the rate of rainfall is usually. The monetary policy is aimed at supporting or disbursing creditors in the process of raising banks' legal entities by banks. In 2017-2021, the strategy of actions of the Bank of Uzbekistan should strengthen the commercial bank deposit base, strengthen capitalization, strengthen the financial stability and provide private investment. However, there are certain factors that are contributing to monetary policy discouraging commercial banks' credit issuance. One of the factors is that the Central Bank of the Republic of Uzbekistan is the top supplier of mandatory reserve requirements. The high capacity of central bank compulsory reserve applications has a significant impact not only on encouraging commercial banks' credit issuance but also on the liquidity of banks. However, the amount of mandatory reserve of commercial banks is achieved by “Nostro” in national currency.

Conclusion and Suggestion

The research of the scientific theoretical views of the money proposal suggests that, firstly, the demand for financial assets and the government and the Central Bank can influence the rate of return on capital and the profitability of capital by affecting profitability; Secondly, the Central Bank offers significant opportunities for adjusting the money supply, and inflation can be offset by the devaluation of the net monetary phenomenon and inflation due to the fact that there is a large number of factors; Thirdly, the annual growth rate of money supply should be fixed as a decisive indicator and monitor the implementation of this indicator by the Central Bank; Fourth, the fact that M2 money aggregation was chosen as an indicator of monetary policy in the Republic of Uzbekistan is explained by the fact that the number of deposits is relatively high.

References

  1. Mirziyoev Sh. Critical analysis. strict discipline and personal responsibility- a daily rule of conduct for every leader. Tashkent Uzbekistan. 2017.
  2. President of the Republic of Uzbekistan 4947th Edition Appendix 1 to the Command. Five strategies for sustainable development of the republic of uzbekistan in 2017-2021 strategy of movement. The Republic of Uzbekistan. Tashkent. 2017; 6: 32.
  3. Tobin J. Basic politics and economically true. 2010; 162.
  4. Freeman M. Yes it is Per. 1999.
  5. Namozov O, Sagdullaev S. Inflation targeting in monetary policy strand with a reduced economics market level and credit tashkent. 2003; 4: 35-39.
  6. Hansen E. Financial theory and financial theory. 2006.
  7. Manevich VI. Russian economics and theory Business and Bank. Moscow. 2007; 25: 2.