Restrictions on the use of the exception, and the flexibility with which it may be employed, combine to substantially restrict its potentially adverse effects.
Preventing the use of reserves in times of dollar demand by the public would be as absurd as not using an umbrella when it rains. In this case, the stock of foreign reserves would not be a “cushion” to buffer financial ups and downs but a “bedrock” with no absorption capacity. The strengths of our monetary and financial system are evident.