The extent to which central banks hold FX risk in their balance sheets differs substantially from the typically much lower FX exposures of private firms. FX risk is, in normal times, the core determinant of the risk profile of a central bank such as the ECB.
Second, the absence of modern infrastructure and shortage of skilled manpower are the most critical barriers to the growth. It is imperative to augment the existing infrastructure facilities, particularly roads, ports and power to provide an enabling environment for industry to prosper. There has been a mixed progress in the infrastructure sector so far.