However, a currency union it is argued, could help make the shocks affecting member countries more symmetric in the future and might also expand intra-regional trade. These arguments are not different from the observations made by theorists, when the European Common Market was born. It was felt that common currency arrangements would by themselves reduce dissimilarities among member countries.
As challenges evolve globally and domestically, we will further improve our open market operations and expand our policy toolkit. We are currently studying and consulting with the industry for operational refinements to further strengthen our ability to guide short-term market interest rates and the transmission of monetary policy to the economy.