The president of Central Bank of Uruguay (BCU), Diego Labatadmitted that the state body is taking slow steps in its plan of dedollarize the domestic economy and that this “is a very long process” that depends on the inflation consolidates in the current numbers over a certain time.
The economist was invited to speak this Wednesday at the headquarters of the Official Spanish Chamber of Commerce, Industry and Navigation in Ciudad Vieja, in front of authorities of the government of Spain and of the European Union, and representatives of Spanish companies based in Uruguayamong other attendees.
“Within these rules of the game is the freedom of choice, (on the part) of each of the (economic) agents, of the currency,” he indicated. Labatwho added, however, that since the BCU They understand that it is necessary to “go to a process that leads to having much deeper and more powerful domestic financial markets in national currency.”
Labat He explained that this “helps the performance of the economy and the power of monetary policy,” so it is important to make progress in that direction.
“We are coming relatively slowly, but we are aware that as long as inflation is not sustainedly down for quite some time, it is a process that is going to be very long, but we must take steps,” concluded the president of the body.
Financial stability and price stability, the two mandates of the BCU
At the beginning of his dissertation, Labat assured that the current board of directors of the BCU It has two mandates: “financial stability” and “price stability.”
This aspect was especially highlighted by the ambassador of Spain in Uruguay, Santiago Jimenez Martinwho stated before that Labat. The diplomat highlighted the price stability that the country achieved, as well as the latest data on the inflation rate, which is at historic lows.
The president of BCU He maintained that, however, the task of combating inflation is not finished, but that they are where they wanted to be, “going on the right path.”
In turn, they communicated that they hope to continue reducing interest rates, but that this will depend on “that inflation remains where it is” and “that expectations continue to fall.”
Source: Ambito
