Currency Reform in Transition Economies: The Case of Uzbekistan's 2017 Som Devaluation

The article analyzes the 2017 devaluation of the Uzbek Som (UZS), the country's currency, with an emphasis on the decision justifications, goals, and effects. It discusses the government goals, such as the necessity of removing the parallel foreign exchange market, attracting foreign investment, and liberalizing the economy. Additionally, it evaluates the devaluation's advantages and disadvantages for different economic sectors, especially in relation to inflation, monetary policy, and the business climate. It ends with suggestions for maintaining Uzbekistan's economic development and stability over the long run, with a focus on boosting productivity and encouraging active engagement in global commerce. The findings show that devaluation was an essential step in the direction of economic modernization, but it will take time to fully manifest its consequences.