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Investor Presentaiton

During the regional sell-off, the Central Bank (CB) sold dollars in exchange for local- currency CB bills, mostly tendered by Pension Funds (PF). This allowed PF to buy-up global nominal peso government bonds, allowing for an orderly unwinding of non-resident positions by increasing liquidity during financial stress Central Bank FX Intervention (In USD million) 600 FX Sales through CB Bills Repurchase FX Purchases -Average Monthly Nominal Exchange Rate 400 200 I T I 0 T -200 -400 -600 I -800 Dec-17 Mar-18 Jun-18 Sep-18 Source: Central Bank of Uruguay 34 Yield of Nominal Peso (UYU) Bonds (In %) 13 12 11 10 Maturing 2028 Maturing 2022 32 32 CB Bills Repurchase 8 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 implication 30 30 Residents' Holdings of UYU Bonds (In % of total outstanding) 28 26 26 25 45 20 15 24 24 Source: Bloomberg (upper); Ministry of Economy and Finance (below) 10 5 0 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 30
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