Investor Presentaiton
IMPLICATIONS OF THE INTRODUCTION OF LOCAL CURRENCY
■ Halting of Costly Re-dollarization -economic agents were reverting to use
of US dollar as unit of account and medium of exchange;
■ Improved Monetary Policy Effectiveness - use of monetary policy
instruments to control inflation and maintain price stability going forward;
■ Enhances ability to manage business cycles;
Increased fiscal space – enhances tax base for Government through
increased revenues from local currency based transactions;
Management of current account deficit - allows use of exchange rate
policy to enhance export competitiveness to reduce the current account
deficit;
Build up of reserves - country can build reserves as use of FX is
restricted to foreign transactions only;View entire presentation