Our approach to regulation has been to preserve financial stability and promote consumer protection. 25. It is the obligation to balance these objectives that has cast a responsibility on the Reserve Bank to take a measured but constructive approach to financial innovation.
Recent developments, however, have taught us that all praised and hailed examples are very much short-lived, as inflation under the currency board regime is rising, e.g. 9.3% in Bulgaria year-on-year and 10.2% in Latvia, while even Montenegro is facing the challenges of a resurging inflation which reached 4.2% during the first 8 months with euro as legal tender!