Nonetheless, and without entering the long-running debate over exchange rate systems, I believe that it is better to operate with a flexible exchange rate system and with a more open capital account. 8  BIS central bankers’ speeches  “Flexible” does not mean that a country should not intervene in the foreign exchange market, or that the capital account should be completely open.
Rather it means that the country should not draw an exchange rate line in the sand and declare “thus far, and no further”; countries should not commit themselves to defending a particular exchange rate. Market participants often say that the central bank cannot stand against market forces.