flows to emerging economies. as regards the medium and long term, the nature and functioning of transactions differ from those for short - term transactions. the financial services provided by banks for longer - dated terms are, essentially, financing and the extension of guarantees and bonds needed to participate in international tender procedures. on many occasions these are syndicated operations, or operations performed by several banks from various countries. we should highlight here the role played by export credit companies. this activity is subject to the rules set under the oecd arrangement on officially supported export credits, or the oecd consensus, as it is usually called. the oecd consensus the oecd consensus, signed in 1976, has regulatory status in the european union and seeks to prevent financial facilities granted by a state to an exporter from distorting bis central bankers ’ speeches competition and giving an exporter an unfair advantage against competitors from other countries. the consensus also works on the assumption that official support is warranted only if there is a “ market failing ” that prevents the private sector from properly meeting its task as a financier. the consensus sets common rules for exports in the medium and long term, understanding as such terms over two years, and specifies that official support may take the form of either direct public financing of the export, or the underwriting by the public sector of the refund of the export financing granted by private institutions. in spain, cesce ( spanish export credit insurance agency ) pursues its activity on behalf the state, complementing that of the banking system. among its operations, what affords the greatest value added is the coverage of credit risk arising from a spanish export, of a relatively high amount, at a term of over two years, habitually financed by a bank. such coverage is the norm for exports towards countries with appreciable risk and in transactions which, frequently, have the sovereign guarantee of the importing country. cesce also provides underwriting on the state ’ s behalf for the political risks associated with exports ( the main such risk being default by the sovereign or by the institutions backed by the sovereign ), except in operations at less than two years in eu and oecd countries, where it is considered that there is a sufficiently developed private underwriting market ; it also extends guarantees and bonds for participating in international tender procedures and projects. from 1998 to 2007 there was a strong expansion in international banking activity in financing for spanish companies ’ international activity. banks took on a relevant

emmanuel tumusiime - mutebile : bank of uganda ’ s position on the exchange rate statement by prof emmanuel tumusiime - mutebile, governor of the bank of uganda, kampala, 19 january 2011. * * * i think that it is now necessary to state clearly bank of uganda ’ s position on the exchange rate. we believe that the current level of the uganda shilling / dollar exchange rate is undervalued. moreover, further depreciation will be counterproductive for macroeconomic management, especially because of the impact this will have on the prices of imported goods and hence on consumer price inflation. consequently, the bank of uganda intends to adopt a more aggressive stance to support the exchange rate. we sold dollars yesterday to the interbank market. we are prepared to intervene again if necessary. we are complementing this by raising interest rates in the interbank market and on repo instruments. of course open market exchange rates are difficult to control and no central bank can guarantee to move the exchange rate in the direction it wants. however, i want to stress that we are not indifferent to further exchange rate depreciation and that for the immediate future, curbing such depreciation will be a priority of the bank of uganda ’ s macroeconomic management. bis central bankers ’ speeches