A bank’s board of directors should understand the bank’s exposure to risk, and its members should be willing and able to critically question senior management about important matters affecting those risks.
This will help ease pressure of inflows of foreign exchange and rapid build-up of reserves, promote sound and sustainable development, and realize stable and orderly growth of money supply. According to international experiences, a flexible exchange rate regime helps mitigate impacts of external shocks and enhance macroeconomic resilience.