There will, however, be continuing challenges in implementing the new framework on the ground. A regulatory framework is only effective as the supervision system that implements it. In Bermuda, the three issues that I have flagged earlier will have local ramifications that need to be worked through.
Yet, pessimism is not what I want to spread. A series of inconsistencies in the international currency have, in my judgement, deepened our understanding of the functions and roles of an exchange rate regime and have encouraged the evolution of such a system.