At the same time, the micro structure of foreign exchange market shows improvement as indicated by the increase in the volume of interbank transactions and a more healthy price discovery in the forex market. A lower off-shore non-deliverable forward rate (NDF) compared to the spot rate indicates a more liquid market [GRAPH 6]. Graph 6 Foreign exchange market  19.
I am encouraged by recent comments that there are very viable projects commercial banks are now viewing. Given the high level of liquidity in the banking system and to smoothen the sharp decline in interest rates, the Tap facility was closed in May 2004 and the maturing volumes were shifted to the weekly auction.