It is also worth adding that, in any case, it is unlikely that we would have avoided a substantial real exchange rate appreciation, with it coming through the more costly route of higher inflation. This, of course, does not mean that, at each and every point in time, the exchange rate is at its ideal rate from a domestic balance perspective.
We should not forget that exchange rates are relative prices between two countries’ moneys. This means that they are determined both by what is happening domestically and by what is happening abroad.