12 With regard to (ii), the stabilization of disorderly markets: in extremis, the central bank may have to intervene to stabilize a disorderly market, but it needs to be aware that the more frequently and easily it intervenes, the more it will impede the development of a deep and robust market, in which it is possible to hedge against exchange rate changes without having to rely on government intervention.
13 With regard to (iii), the accumulation of reserves, the question is how best to do this. A variety of approaches has been used, including buying preannounced amounts of foreign exchange at a steady rate over a period of months. Other central banks have added to reserves on an opportunistic basis.