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
30View entire presentation