On the other hand the euro is used and will in all probability be even more used in the future as a pegging currency by some EU countries that have not joined the EMU, by countries of Central and Eastern Europe that are candidates for EU membership and by some other emerging countries.
Otherwise, the effect would be a drawdown in foreign reserves and undermined support for the currency. The preventive measure is limiting the occurrence of deficits, in the first instance, as often the choice of how the deficit will be financed is an artificial one. There is nevertheless a medium-term concern about the level of liquidity in the Bahamian financial system.