Latinnews Daily - 18 September 2003

The central bank seems to be heading for a major monetary policy problem. It has been issuing certificates of deposit (CD) to drain money from the banking system in order to prevent inflation turning into hyperinflation. The problem is that it has overdone things: 28% of the banking system's deposits are now held by the central bank. The bill on the CDs will be around 1 trillion bolí­vares (US$6.25bn) this year.

End of preview - This article contains approximately 168 words.

Subscribers: Log in now to read the full article

Not a Subscriber?

Choose from one of the following options

• Subscribe
• Sign up for a one-time, 14-day trial