The role of the markets in determining exchange rates has become more important. And it had to be learnt - painfully - over the course of several crises that the economic fundamentals and policies of a country do play the decisive role in the development and stability of exchange rates.
But a very important role attributed to the markets does not mean that there is no longer any role for exchange rate policy. Let me highlight two aspects. For one thing, country-specific characteristics have to be used to determine the most suitable regime for a country. While this holds true for every country, it is especially important for emerging market economies.