Uzbekistan’s currency is sliding on the black market, where the dollar-sum rate is volatile following last week’s presidential election.
The black market rate hit a record high of 4,700 sums to the dollar on April 2, the Uzmetronom website reported.
It has since fallen back and was trading at 4,220-4,270 on April 6, a source in Tashkent told EurasiaNet.org. The sum has thus lost between 5 and 7 percent of its value since the presidential election on March 29, when it was trading at 4,000-4,100 to the dollar.
The divergence between the official and black market exchange rates has grown exponentially in recent weeks: Traditionally, the sum has traded for around one-third more on the black market, but the gap is now around 66 percent. The National Bank of Uzbekistan is selling dollars for 2,540 sum, according to its website.
One possible explanation for the sum’s decline is that it is mirroring the trajectory of Russia’s ruble, which has caused currencies across Central Asia to plunge in value. A drop in remittances sent home by labor migrants in Russia owing to the economic crisis there is another possible reason: Remittances from Russia to Uzbekistan fell by 15.5 percent last year, according to data recently released by Russia’s Central Bank, which means fewer dollars circulating in the economy.
Uzmetronom speculated that the currency was just settling at its real market value, and predicted that the rate could hit new highs of 5,000-5,500 sums to the dollar by summer.
Incumbent strongman Islam Karimov has won a universally predicted landslide with over 90 percent of the vote in Uzbekistan’s competition-free presidential election, according to preliminary results released by the Central Electoral Commission the day after the vote.
The 77-year-old incumbent swept to victory with 90.39 percent of votes cast, electoral commission chairman Mirzo-Ulugbek Abdusalomov told a briefing on March 30. Turnout, he said, was 91.08 percent.
No one had doubted Karimov would win a fourth term in an election in which he faced only three stalking horses. Akmal Saidov came a distant second with 3.08 percent of the vote followed by Khatamzhon Ketmonov with 2.92 percent, while Narimon Umarov trailed last with 2.05 percent. Karimov’s margin of victory was slightly smaller than the 90.76 percent he won last time, in 2007.
Observers from the Organization for Security and Cooperation in Europe (OSCE) issued some damning preliminary findings on March 30, singling out issues ranging from Karimov’s flouting of the constitution, a lack of real competition and widespread proxy voting.
“The figure of the incumbent dominated the political landscape without genuine opposition,” the OSCE said, adding that Karimov did not enjoy the legal right to stand in the election he has now won: “Despite a clear constitutional limit of two consecutive presidential terms, the Central Election Commission registered the incumbent as a candidate in contravention of the rule of law, raising doubts about its independence.”
An unseasonal blizzard in Tashkent did not affect turnout during Uzbekistan’s presidential election on March 29, with incumbent strongman Islam Karimov galloping to victory in a one-horse race.
“I voted for Islam Karimov. He’s a good man,” said railway worker Rustam after casting his ballot (like other interviewees, he declined to supply his last name). “We know him and we don’t know who the others are.”
Rustam was summing up the mood prevailing among voters, who overwhelmingly say they back Karimov and know little about the other three candidates: Khatamzhon Ketmonov, Narimon Umarov, and Akmal Saidov.
These stalking horses, widely believed to be standing in the election to create a semblance of competition, have effectively been campaigning for Karimov, election observers from the Organization for Security and Cooperation in Europe said in findings released ahead of the vote.
The iron rule of the 77-year-old president – who has ruled Uzbekistan since 1989 – may come under fire in the West. But it wins praise at home among voters subjected to a constant barrage of propaganda praising their leader. “I voted for Karimov. He keeps a tight grip on things,” said pensioner Hassan approvingly.
Human rights campaigners have criticized the election for offering voters in Uzbekistan (where no genuine opposition parties exist and dissenters are routinely jailed) no real competition. They also charge that Karimov is flouting the constitution – which limits presidents to two terms of office – by standing for his fourth term.
The mercury is rising in Uzbekistan now that spring has arrived, yet the political temperature remains cool in advance of a presidential election March 29. Uzbekistan may suffer from a variety of political, social and economic ills, but election fever has never gripped this Central Asian state.
Gulnara Karimova, the daughter of Uzbekistan’s strongman leader Islam Karimov, has been making international headlines for years amid charges of massive bribery and corruption. But fresh evidence unearthed by an anti-corruption watchdog suggests her avarice reached mind-boggling scales as she vacuumed up cash from telecoms companies wanting a slice of Uzbekistan’s lucrative cellphone pie.
Karimova received over $1 billion in payments and shares from Scandinavian and Russian telecoms companies such as TeliaSonera, Telenor, MTS, and Alfa Telecom, the Organized Crime and Corruption Reporting Project (OCCRP) alleged in a report published March 21.
“Her audacious schemes may have cost the people of Uzbekistan money that could have paid for pensions or healthcare but instead went into banks, an offshore hedge fund and luxurious real estate around the world, including a castle in France and a penthouse in Hong Kong,” the OCCRP stated.
The watchdog was skeptical of the defense put forward by telecoms firms that they did not knowingly commit any wrongdoing: “While the international companies involved claim to have been innocent or unwilling dupes of her maneuvers, the blatant means by which Karimova allegedly operated made it virtually impossible for those involved not to realize they were giving in to extortion and bribery.”
Cracks in the fledging Eurasian Economic Union were on clear display in Astana on March 20 as the leaders of Russia, Kazakhstan and Belarus met to discuss the regional economic slump.
Nursultan Nazarbayev, the host president, made a point of affirming Kazakhstan’s support for Ukraine’s territorial integrity – a statement guaranteed to raise the Kremlin’s hackles. Vladimir Putin responded with a call for an EEU currency union, something that is anathema to both Nazarbayev and Alexander Lukashenko of Belarus.
“It is necessary to emerge from the situation that has arisen in Ukraine via diplomatic means; no military solution to this problem exists,” Nazarbayev said of Ukraine. “In so doing, it is important that any decisions taken are based on fundamental principles of international law. We are interested in Ukraine remaining a stable, independent, and territorially intact state.”
With Russia denying it has fomented separatist strife in southeastern Ukraine, such a pointed public statement from a close partner was guaranteed to rouse Putin’s ire. In his remarks, Putin said a ceasefire deal reached in Minsk in February – which has been routinely flouted – created a “real opportunity for a gradual de-escalation of the armed conflict.”
The long-serving strongman leader of Kazakhstan has confirmed his intention to stand for reelection in a snap vote next month. He is guaranteed to win a landslide.
Nursultan Nazarbayev accepted the nomination of his ruling Nur Otan party to stand in the April 26 election at a party congress on March 11, his Twitter feed reported.
“I declare my agreement to stand as a candidate for president from the Nur Otan party in the upcoming elections,” @AkordaPress, the Twitter account run by the presidential administration, quoted him as saying.
“We must move forward,” he told the congress in remarks quoted by Tengri News, after delegate after delegate had proposed in fawning speeches that the incumbent accept the nomination. Nazarbayev remarked that he was “not so young” but was ready to “do great deeds in the future.”
Women had stood shoulder to shoulder with men in the Russian Revolution of 1917, according to its leader Vladimir Lenin, and were said to be at the vanguard of the drive to build an equal society in the world’s first communist state; the Union of Soviet Socialist Republics (USSR).
As Kazakhstan heads for a snap presidential election, strongman leader Nursultan Nazarbayev is making no secret of his reasoning for an early vote: he wants to both reinforce support for the government to help it weather an economic downturn and to disarm “nationwide alarm” about the potential threat of “internal discord and external conflicts.”