METHODS AND INSTRUMENTS OF MONETARY POLICY IN THE ASPECT OF COMMERCIAL BANKS

Аннотация

The article considers the main methods and instruments of monetary policy of commercial banks of Uzbekistan and the results of their use in modern conditions. Keywords: monetary policy, methods and instruments, financial system, commercial bank, modern economy. Central banks and other monetary policy regulators in the XXI century must solve a large number of different issues related to various aspects of the country's monetary policy. At the same time, the implemented policy must balance between competitiveness and economic development and stability. In this regard, monetary policy regulators must have a whole range of tools and methods that would allow them to promptly influence the emerging macroeconomic policy. At the same time, it is important to emphasize that the tools must be extremely flexible, that is, have varying degrees of influence on the economy, and also differ in the mechanism of influence [3]. That is, regulators must have both direct and indirect tools to influence the economy. The need for such tools is due to economic cycles, as well as the speed of their change. Thus, in the conditions of a developing economy, the regulator has the opportunity to implement, for example, a restrictive monetary policy in order to smooth out economic cycles, and already in periods of economic stagnation and recession, it conducts a stimulating monetary policy that will allow the real sector to return to growth. In this regard, monetary policy regulators who have encountered sharp changes in economic cycles in their activities are of interest. It is necessary to determine what instruments they used and what goals were pursued when using this or that instrument and method of monetary policy. At the same time, there are urgent problems related to the improvement of monetary policy in our republic. The high growth rate of the money supply and the depreciation rate of the national currency, the low level of provision of the country's economy with money, and the relatively high interest rates on loans in the national currency of commercial banks are among the urgent problems in this regard. 135 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference In turn, finding scientifically based solutions to urgent problems related to the improvement of monetary policy requires the study of the provisions of leading monetary and credit concepts and assessing their practical significance. T. Bobakulov's conclusion that it is necessary to choose the growth rate of the M2 monetary aggregate as an indicator of the monetary policy of the republican commercial bank is based on the following evidence: -The existence of legal grounds for using the growth rate of the money supply as an indicator of monetary policy; -The existence of a direct relationship between cash circulation and economic activity in our republic; -The ability of the bank to directly influence the money supply in circulation through the monetary base; -The leading role of non-monetary factors in the composition of inflation- forming factors, the fact that the core inflation indicator is not used in the process of inflation targeting [2]. Within the framework of this article, 8 monetary policy instruments available to a commercial bank of the Republic of Uzbekistan within the framework of monetary policy implementation are defined. These instruments are as follows: 1) Interest rates on operations of the Bank of Uzbekistan; 2) Mandatory reserve requirements; 3) Open market operations; 4) Refinancing of credit institutions 5) Currency interventions; 6) Establishing monetary policy guidelines; 7) Direct quantitative restrictions; 8) Issue of bonds on its own behalf. It should be noted that such instruments, for example, include specialized instruments for refinancing credit institutions or mechanisms for providing foreign currency to credit institutions [1]. As mentioned above, each instrument pursues a specific goal. In this regard, it is necessary to analyze each instrument in more detail, as well as determine the degree of its use within the framework of Russian monetary policy at the current stage of the economic cycle in Uzbekistan. The last tool that will be considered in this paper is the issue of bonds on behalf of commercial banks of the Republic of Uzbekistan. Bonds of commercial banks are a tool for withdrawing excess liquidity from the market of credit 136 ACADEMIC RESEARCH IN MODERN SCIENCE International scientific-online conference institutions. That is, as in the case of open market operations and refinancing of credit institutions, this tool is aimed at managing the volume of liquidity in the market. In conclusion, it should be said that the combination of monetary policy instruments used varies from one economic cycle to another, due to the fact that different goals are pursued in different economic cycles. If the policy is currently aimed at targeting inflation, then the instruments used will be aimed at achieving this goal