rba4-local.rba.gov.au/speeches/2020/sp-dg-2020-06-30.html  15/18  30/06/2020  The Reserve Bank's Policy Actions and Balance Sheet | Speeches | RBA  Graph 11  The RBA has historically sterilised the effect of government transactions either with domestic repos or foreign exchange swaps. With the focus on supporting domestic liquidity, the RBA's foreign exchange swap book for domestic liquidity management has gradually matured to be zero currently.
But the definition of financial stability remains largely informal. He emphasised that the financial stability mandate and governance arrangements for central banks must be compatible with their monetary policy responsibilities. For the SAARC countries, given the levels of development, he underscored the point that financial literacy and financial inclusion goals should not get marginalised because of the overdrive for financial stability.