Macroeconomic Forecast Managing The FX Influx

BMI View: The authorities are doing a good job in managing the influx of FX from exports and FDI, and are keeping inflation under control; we forecast inflation remaining in the single digits in 2008. However, there is need to improve and broaden the tools available to the central bank, which still uses prescriptive controls and blunt instruments such as statutory reserve levels on the banking system.

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