On our part, with constant observation of the factors that may jeopardize our financial stability and the normal functioning of our payment system, in order to adapt our regulations for better regulation and supervision. Also, with our commitment to maintain our flexible exchange rate policy, which we believe is the best way to deal opportunely with any sudden changes in external conditions and rely on monetary policy to alleviate its effects on the Chilean economy. Finally, through a credible monetary policy aimed at controlling inflation. Inflation is a source of social stress, that hits with special force the most needy: those unable to negotiate wage adjustments to sharp changes in the price level. As we have insisted time and again in recent months, monetary policy has to juggle with two opposing forces. Pulling in one direction, there is a weak external scenario that will not add momentum to our economy. In the other, there is strong domestic output and demand, with tight output gaps and labor market. It is the task of the Central Bank to conduct monetary policy avoiding the incubation of pressures pushing inflation away from the target. Facing this environment of high risks and volatility, the Board has kept a prudent attitude. Acting hastily would only reduce its capacity for action. As unreasonable as supposing that we will be spared the problems of the world, is thinking that we are being severely affected by them.

A number of regional and global business processing centres and other regional facilities have been set up including the OHQs, regional offices, international procurement centres and regional distribution centres. Ladies and Gentlemen, As part of the Government policy commitment to improve the delivery system and reduce the cost of doing business, the Central Bank has undertaken a progressive liberalisation of domestic rules and regulations to reduce the cost of doing business. An area of focus has been the rules governing the foreign exchange transactions. Reducing cost of managing risks associated with such transactions include the recent liberalisation of rules on foreign currency accounts, interest rates swaps and hedging. To broaden and deepen our capital markets, the multilateral agencies and multinational  corporations are now allowed to issue bonds in Malaysia. Going forward, Malaysia will continue to undertake further liberalisation while balancing the need to accord flexibility and choices to businesses with the macroeconomic objectives of ensuring stability in financial markets. Ensuring such long-term stability that facilitates planning and investment decisions has been an important part of maintaining our competitive position. In the development of our financial sector, the banking sector continues to be the pillar of the financial system and is now at its strongest position with high level of capitalisation, improving asset quality and stronger profitability. Policy initiatives to strengthen the banking system, including in the areas of regulatory and supervisory frameworks, risk management, corporate governance and best practices in transparency and disclosure have contributed to strengthen the system further.