In this context, I cannot say often enough that each regulatory project – be it Basel III or now the regulation of sovereign exposures – very much calls for international cooperation. If we do not coordinate our approaches towards regulation, we will create a fragmented financial system with vast opportunities for regulatory arbitrage.
Accordingly, we continue to enjoy a comfortable reserve position with our gross international reserves (GIR) at $ billion in July 2005. Impetus for capital market reform A growing economy, such as ours, requires a steady flow of financing from both local and foreign sources. In sustaining this development, the economy needs a healthy financial system.