Remuneration of Reserves in National and Foreign Currency

Montevideo, July 20, 2023 Ref: REMUNERATION OF RESERVES IN NATIONAL AND FOREIGN CURRENCY.

It is brought to your attention that this Central Bank adopted, on July 19, 2023, Resolution D/239/2023, which is transcribed below:

Ec. Adolfo Sarmiento Manager of Economic Policy and Markets (Ref. No. 2015-50-1-00800) Diagonal Fabini 777 - C.P. 11100 - Tel.: (598 2) 1967 - Montevideo, Uruguay - www.bcu.gub.uy

1 CIRCULAR NO. 2435

BOARD OF DIRECTORS - RESOLUTION Montevideo, July 19, 2023.

BOARD OF DIRECTORS

HAVING VIEWED: the reserve regime provided for in Book XIV - Reserve Regime of the Compilation of Operations Norms.

WHEREAS: the current criterion for remunerating reserve deposits in foreign currency and national currency is linked to the Monetary Policy Rates.

CONSIDERING: I) that within the framework of the monetary policy normalization process, the evolution of Monetary Policy Rates in the countries issuing the various currencies was analyzed, as well as the behavior observed in financial markets;

II) that it is opportune to modify the remuneration criterion for reserve deposits in both foreign and national currency to reflect the aforementioned evolution.

ATTENTIVE: to the above, to the provisions of Articles 3 and 27 letter B) of Law No. 16.696 of March 30, 1995, as amended by Articles 1 and 5 of Law No. 18.401 of October 24, 2008, to the report from the Manager of Economic Policy and Markets dated July 14, 2023, and other background information appearing in file No. 2015-50-1-0800,

IT IS RESOLVED:

1. To establish that the remuneration of reserves in national currency, to be constituted from August 1, 2023, shall be fixed according to the following rule: REm/n = 60% of the MPR.

Where: REm/n: remuneration of reserves in national currency. MPR: Monetary Policy Rate defined by the Monetary Policy Committee in effect on the first business day of the corresponding month.

2. To establish that the remuneration of reserves in foreign currency, to be constituted from August 1, 2023, shall be fixed according to the following rule: REm/e = MPR – 0.50%.

R.N°: D-239-2023 File No.: 2015-50-1-00800 D-239-2023.pdf Folio No. 317 CIRCULAR NO. 2435

BOARD OF DIRECTORS - RESOLUTION

Where: REm/e: remuneration of reserves in foreign currency. MPR: Monetary Policy Rate of the monetary authority issuing the currency, in effect on the first day of each month that is remunerated. In the event of a monetary policy rate band, the upper limit of the band shall be taken. In the case of the non-existence of a target monetary policy rate, the one-day reference rate shall be taken.

3. To establish that the remuneration of the excess balances of the reserve requirements in foreign currency of the current accounts referred to in Articles 1 and 2 of Book I of the Compilation of Norms of the Payment System, shall be fixed, from August 1, 2023, as follows: RCC = MPR – 0.50%.

Where: RCC: remuneration of current accounts in foreign currency. MPR: Monetary Policy Rate of the currency-issuing authority, in effect on the first business day of the month that is remunerated. In the event of a monetary policy rate band, the upper limit of the band shall be taken. In the case of the non-existence of a target monetary policy rate, the one-day monetary policy reference rate shall be taken.

4. To repeal what was provided for in Resolution D/108/2022 of May 11, 2022, and what was established in Communication No. 2020/0290 of December 24, 2020.

5. To entrust the communication of what is established herein by circular to the Manager of Economic Policy and Markets.

(Today's Session – Minutes No. 3661) (File No. 2015-50-1-0800)

Jorge Christy General Secretary

Dv/am/ds

Publishable Resolution R.N°: D-239-2023 Signatory: Jorge Eduardo Christy Davies Date: 19/07/2023 17:28:51 File No.: 2015-50-1-00800 D-239-2023.pdf Folio No. 318 CIRCULAR NO. 2435