The approach to disinflation, however, needs to be mindful of the rising risks to the growth outlook in an environment of deteriorating prospects for global growth and trade activity. Containing External Debt Vulnerabilities 7. The surge in external debt in recent years and associated vulnerabilities have undermined macroeconomic stability in several countries of the South Asian region.
But most importantly, by promoting the use of FX hedging instruments the NBS is hoping to contribute to a situation when businesses and households are no longer scared of the exchange rate fluctuations. Situation when prices are quoted in dinars and not in euros. Admittedly, it is a far reaching ambition, but expanding the use of financial hedging is the first important step.