IMF eyes stronger transmission mechanism in Paraguay


Paraguay's authorities should promote a more active interbank market and consider steering banks away from US dollar operations to strengthen the monetary transmission mechanism in the country, according to the International Monetary Fund.

In a staff report published on February 20, the IMF praised the "strides" taken towards an inflation-targeting framework in Paraguay, noting inflation had "eased back into the lower part of the target range" over the past six months.

Annual inflation has

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