They have had to step in swiftly to stabilize economic activity and restore trust in the financial system. These central banks are in uncharted territory. Some fear that, like some of the mammoth universal banks at the heart of the crisis these central banks may also have become too big to fail.
Others raise the spectre of a “currency war” and revive memories of a former US Treasury  BIS central bankers’ speeches  3  Secretary, John Connally, who told a group of European finance ministers worried about the export of American inflation that the dollar is “ our currency, but your problem.” Small central banks, like ours, do suffer from this quantitative easing and consequent currency weakening in our reserves portfolio even while we recognize that we benefit from the favourable impact on the demand for our exports.