So far these policy measures have had a major effect on equity and bond prices, on capital flows and on exchange rates. They have depressed the $ generated a new carry trade in $ and resulted in significant new capital inflows to emerging markets.
We continue to take a proactive approach in developing new regulations or updating/revising existing ones, as appropriate, in line with our long-standing policy of implementing international standards. A key recent highlight has been the implementation, from the start of this year, of the Basel II regulatory framework, which will significantly enhance the risk management practices of Bahrain’s banks.