BIS central bankers’ speeches  7  Of course, temporary irrationality in the market can overwhelm a central bank. Much like a bank run, a falling currency can prompt further fall as foreign investors attempt to get out before they lose everything. To maintain orderly movement of the rupee versus other currencies, we believe we need three ingredients.
The recourse to innovative financial instruments such as debt-for-nature swapscould help to reduce the debt of developing economies and to raise funds for conservation projects and increasing the stock of carbon dioxide natural removals.