The financial system is prone to excesses, given the high leverage of banks and other financial institutions. Within the financial system, banks are  22  BIS Review 54/2009  “special”, whether locally- or foreign-owned, because they effectively act as trustees of public funds through their deposit taking activities and are the lynch pins of the payments systems.
As an inflation-targeting central bank, we allow foreign exchange flexibility so that we can conduct independent monetary policy primarily focused on assessment of domestic conditions, and is thus not based on actions of the Fed. Nevertheless, we consider external factors and exchange rate movements if these will materially impact the pursuit of domestic objectives especially inflation.