In such a situation, the Bank of Canada can increase the supply of liquidity to support the smooth functioning of the system, and/or indicate publicly that it is willing to provide liquidity as needed. For example, following the terrorist attacks of 9/11, the Bank increased the supply of liquidity in the payments system to $ billion from the then-typical $ million.
In general, the external environment faced by EMEs at present is quite challenging, and the situation is unlikely to change much in coming years. However, I would like to focus on two issues which, in my view, are of special importance at this stage.