Tashkent, Uzbekistan (UzDaily.com) -- In 2021, the main factor in the formation of demand and supply for cash was the accelerated growth in retail trade compared to 2020 from 5.7 percent to 12 percent, the provision of paid services from 3 percent to 19 .2 percent, as well as an increase in wages, pensions, allowances and other payments.

As a result, in 2021, the volume of bank cash turnover increased by 40.8 percent compared to 2020, amounting to 507.2 trillion soums and there were no changes in its structural formation compared to previous years.

In the circulation of cash, the volume of cash receipts at the cash desks of banks amounted to 251.7 trillion soums, and the consumption of cash from the cash desk of banks and ATMs - 255.5 trillion soums.

In 2021, there was an increase in cash receipts at the cash desks of banks in relation to GDP (gross domestic product) from 26.9 percent in 2019 to 34.3 percent. In turn, the increase in this indicator can be explained by the fact that the level of use of banking services by the population and business entities is growing.

At the same time, in 2021, an increase in the average nominal wage by 20 percent, an increase in 2 times the amount of benefits and other social payments by 10 percent, as well as the introduction of innovative technologies in the infrastructure of payment systems became an influencing factor in the growth in the receipt of funds on bank cards by 1 .7 times, and reached 300 trillion soums.

During this period, the amount of cash withdrawals from bank cards by the population amounted to 95 trillion soums (31.7 percent).

If in 2021 there was an increase in the consumption of cash from the cash desk of banks (including ATMs) compared to 2020 by 75.3 trillion soums, the main part of this growth was formed due to an increase in the volume of cash withdrawals from bank cards (32.9 trillion soums) and the volume of cash used to purchase foreign currency from the population (22.2 trillion soums).

In addition, cash was issued into circulation based on the need of the cash desk of banks in cash, and in some periods there was a return of excess cash from circulation.

As of 1 January 2022, the share of cash in circulation in the total money supply amounted to 20 percent and decreased by 3 percentage points compared to the previous year. And the share compared to GDP decreased from 4.1 percent to 3.9 percent.

The total number of banknotes decreased significantly due to the growth in the share of banknotes with a large denomination in the structure of cash in circulation.

In particular, if the share of banknotes in the structure of cash issued in circulation during 2021, 100,000 soums in size in soums reached from 27.3 percent to 34.8 percent, then the share of banknotes of 50,000 soums decreased from 38.8 percent to 34 .2 percent, 10,000 soums - from 15.7 percent to 14.5 percent, 5,000 soums - from 16.1 percent to 12.7 percent, 1,000 soums - from 2.1 percent to 1.4 percent. In particular, banknotes of a new type of 2,000 soums (0.3 percent) and 20,000 soums (2.1 percent) were put into circulation.

As a result, the number of banknotes put into circulation decreased by 492.4 million or 18 percent.

Reducing the number of banknotes in circulation serves to create convenience for the population in cash settlements, and for banks in cash operations, in particular, facilitating the processes of counting, sorting and packaging.

At the same time, during 2021, new coins in the amount of 14.6 billion soums, and their share in the structure of cash reached 0.16 percent.