Since people often tend to judge the efficacy of the central bank from the ease of continuous access and quality of notes in their possession, currency management function entails a certain degree of reputational risk for the central bank.
It is no coincidence that the lack of adequate accounting practices, bankruptcy provisions, and corporate governance have been mentioned as elements in several of the recent crises that so disrupted some emerging-market countries. Had these been present, along with the capital markets they would have supported, the consequences of the initial shocks of early 1997 might well have been quite different.