For areas in which trade is extensive, such as the European Union or, indeed, the United States, transaction costs can be minimized by fixed rates within the union or by the extreme case of fixed rates--that is, by adopting a common currency. But outside the union, flexibility is necessary and countries have gone over to floating rates.
I urge the Executives of this Association to continue to lead the process of reengineering this sector, and in so doing, to help to refocus the business models of its members towards realigning themselves with the policy objective of financial inclusion for which savings and loans licences were issued.