Central Bank announces that you enter the Forex market

The Central Bank announced last night that from today it will intervene actively in the foreign exchange market to counteract the unusual increase that has taken the rate of change in recent days and avoid this upward to affect the stability of prices.

Said in a statement, the precise institution will participate in the market with high levels of international reserves has, due to its "fi mye commitment to macroeconomic stability and its objective of monetary policy to maintain control of the inflation protected action".

The fi nancial institution indicates that the rise in the exchange rate does not respond to monetary reasons but that it may rather be associated elements seasonal reduction temporary supply of dollars on the market during the first quarter of the year.

"According to information provided, it has been shown that some enterprises in EPZs closed in the first week of the year for the holidays" u000a"Christmas, what inflation protected uyó in a minor offer temporary currency, and other generators of currency of the market, including the tourism sector, would come in the next few weeks to sell their holdings of dollars", said the Central Bank said in a statement.

It revealed that in a meeting with executives of commercial banks Central Bank officials reported them the decision of the monetary authorities of participating today in the foreign exchange market, so that the behavior of the exchange rate may affect the stability of prices.

The Central Bank reported, in addition, commercial banks that this situation will be monitored carefully to avoid movement unwanted in the rate of change that could affect the good development of the economy, while avoiding negative expectations about the future of this variable as important behavior

Reiterated its decision to ensure the u000astability and warned that it is ready to take the necessary measures in monetary and fi nancial, in addition to its participation in the market of foreign currency.

Rates at its meeting in December 2011 monetary policy, Central Bank decided to leave its policy rate unchanged at 6.75 per cent. At the same time, decided to leave unchanged the Lombard rate at 9.0% annual.

Decisions with respect to the reference rate are conditioned by the behavior of the main determinants of inflation protected action. Indeed, in November 2011, the monthly rate of inflation protected action was 0.09%, taking inflation protected action accumulated for the period enero-noviembre to a level of 7.6%. The annualized rate continued falling, going from 8.87% in October to 8.63% in November.

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The economic results of 2011
on information of end of 2011, year in which the economy grew by the order of 4.5% u000aand inflation was 7.76%, the Central Bank reported that within the domestic, economic activity and inflation evolved in line with the macroeconomic framework presented in the program money.

The entity provided economic growth, measured in real terms, would be around 4.5% in 2011. The monetary goals of net international reserves and internal assets, defined in the agreement with the International Monetary Fund (IMF), met with slack at the end of 2011.

Moreover, argued, gross international reserves reached levels exceeding US$ 4,000 billion, the highest in the country's monetary history. Credit to the private sector in national currency maintained a stable and close to the GDP growth rate nominal.

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