Government securities in Uzbekistan explained

When the state borrows in soʻm, it does so by selling government securities. In Uzbekistan these are treasury bills and treasury bonds issued by the Ministry of Economy and Finance and sold at regular auctions run by the Central Bank (CBU). Many private investors assume they are only for banks. The rules say otherwise, although the way in is different from buying a share. This guide explains what exists, how it is sold and what recent auctions paid.

What counts as a government security

The Law on the securities market defines government securities as state treasury bonds, international bonds issued on behalf of the Republic of Uzbekistan, and bonds of the Central Bank (lex.uz, article 3, as of 26 September 2026). Government securities are issued without a prospectus and without state registration of the issue, and they can be short-term (up to one year), medium-term (one to five years) or long-term (five years or more) (article 13).

This guide covers the domestic soʻm securities of the Ministry. The international bonds are sold abroad, and the Central Bank's own bonds are a monetary policy tool.

The rules for treasury bills and bonds

The detailed rules are in Cabinet of Ministers resolution No. 1016 of 14 December 2018 and the regulation it approved on placing, trading and redeeming government securities (lex.uz, as of 26 September 2026). The main points:

• The securities are issued by the Ministry in book-entry form and are backed by all the assets at the Government's disposal.
• Short-term securities (up to one year) are issued as treasury obligations, often called bills. Medium- and long-term securities are issued as treasury bonds.
• They can carry a fixed coupon, a zero coupon (discount securities), be linked to inflation or take other forms.
• The face value of one government security is 1,000,000 soʻm.
• Treasury bonds can be placed among legal entities and individuals, residents and non-residents.
• The Central Bank acts as fiscal agent: it places and redeems the securities through the trading platform of the Uzbek Republican Currency Exchange (UZCE) on behalf of the Ministry, and pays the interest.

How they are sold

Government securities are not sold on the stock exchange like shares. The regulation sets out this path:

1. The Ministry publishes an annual issue schedule, and the CBU announces each auction and its terms at least one day before it takes place.
2. Primary placement is an auction held by the CBU. Dealers submit competitive bids (a quantity at a price they name) and non-competitive bids (an amount of money at the weighted average price of the accepted competitive bids). The Ministry sets a cut-off price, the lowest price at which it will sell.
3. Only dealers take part directly. A dealer is a commercial bank or another licensed investment intermediary that is a member of UZCE. Primary dealers buy at auction for themselves or for investors. Secondary dealers buy through primary dealers and trade in the secondary market.
4. An investor buys through a dealer. The regulation defines an investor as a legal entity or an individual, resident or non-resident, that buys government securities under a contract with a dealer. The investor's orders are submitted by that dealer, and cash settlement for investors goes only through dealers' accounts.
5. Secondary trading takes place in UZCE's trading system on competitive bids from dealers. Auction results settle on T+0, T+1 or T+2.
6. Interest is credited by the exchange to dealers, and dealers pay it to investors under their contracts, to the investor's demand deposit account.

In practice, then, a private investor who wants treasury bonds asks a bank or investment intermediary whether it acts as a government securities dealer and whether it accepts orders from individuals, and what its minimum amount and fees are.

What recent auctions paid

The CBU publishes the results of every auction on its fiscal agent page (cbu.uz, updated 25 September 2026). Two auctions held on 3 September 2026:

• A three-year coupon bond (1,095 days, maturing on 2 September 2029): 3,000 billion soʻm offered, 1,346,000 securities placed for 1,375.35 billion soʻm, a weighted average rate of 12.25%, with accepted rates from 12.24% to 12.30%.
• A 364-day discount security (maturing on 2 September 2027): 1,000 billion soʻm offered, 400,000 securities placed for 358.00 billion soʻm, a weighted average rate of 11.97%.

The same page shows earlier auctions in 2026 at somewhat higher rates. For example, a three-year coupon bond placed on 4 June 2026 had a weighted average rate of 12.79%. Rates change with market conditions and are not a promise of future returns.

Reading a discount security

For the 364-day security above, 358.00 billion soʻm for 400,000 securities means an average price of 895,000 soʻm for a security that repays 1,000,000 soʻm at maturity. A holder who bought at that average price and held to maturity would receive 105,000 soʻm more than they paid, about 11.7% of the price over 364 days. The CBU's published weighted average rate of 11.97% differs slightly because rates are annualised under the auction's own conventions. The arithmetic here is for illustration, before any dealer fees.

Taxes

Under the Tax Code, interest on government securities of the Republic of Uzbekistan is among the incomes of individuals that are not subject to personal income tax (lex.uz, article 378, as of 26 September 2026). Check the current text of the Code before you rely on it.

How government securities compare with alternatives

• Versus a bank deposit. Both pay a rate in soʻm, but a government security can be sold to another investor through a dealer before maturity, at a market price that may be above or below what you paid. A deposit has its own terms for early withdrawal.
• Versus corporate bonds. Government securities are obligations of the state, while a corporate bond depends on one company. Corporate bonds often pay higher coupons to compensate for that. How to buy corporate bonds in Uzbekistan covers them.
• Interest rate risk applies to both. If market rates rise after you buy, the price of an existing fixed-rate bond falls. Bond yield, coupon and price explains why, and interest rates and the CBU refinancing rate covers the rate environment.

Following rates on Finmind

Finmind's paid Yield Curve feature shows the official CBU yield curve for local-currency government bonds by tenor, with history, which helps put auction results in context. Listed corporate bonds are on the public UZSE bonds page.

This article is for education only and is not investment advice. Investing in securities involves risk, including the loss of money you invest.