Investor Presentaiton

4 Monetary policies focused on bringing down inflation and anchoring inflation expectations within target Enhancements to monetary policy framework, communication strategy and de- dollarization policies 1 Commitment to Lower Inflation 2 Short-term Interest Rate as new Policy Instrument Enhanced 3 Transparency in 4 5 Communication Counter-cyclical Monetary Policy Stance Financial De- Dollarization Source: Central Bank of Uruguay. ■ Key focus is to lower inflation and anchor inflation expectations within the target band in a sustainable way, under a floating exchange rate regime. ■ New monetary policy framework under inflation targeting regime. Designed to improve market signals and allows for fine-tuning of monetary policy at higher frequency. Higher frequency in Monetary Policy Committee (MPC) meetings, published minutes of MPC, relaunched inflation survey, among others. ■ Publication of Central Bank's inflation projections and survey of firms' inflation expectations. ■ To respond to the Covid-19 health emergency, monetary policy has been in an expansionary mode. ■ As the pandemic has eased, the Central Bank announced on August 11th a gradual shift towards a more contractionary monetary policy stance as it had signaled it. would do (increased the reference rate by 50 bps, to 5%). ■ The search for the Peso as a quality currency: rebuilding markets in local currency to mitigate financial dollarization and developing FX derivatives markets. 26

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